Question

A graph has quantity on the x-axis and price (dollars) on the y-axis. A supply line goes through (20, 25), (40, 40), (60, 55). A demand line goes through (15, 85), (60, 55), (90, 35).
A store’s supply/demand graph for MP3 players is shown above. If the price is at the equilibrium point, how much money will the store make by selling MP3 players?
a.
$1,275
b.
$1,600
c.
$3,150
d.
$3,300



Please select the best answer from the choices provided


A
B
C
D
Mark this and return

Answer 1

At equilibrium supply = demand at (60, \$55). Revenue = price × quantity = 60 × 55 = \$3,300.

Answer: D