Question

A graph has quantity on the x-axis and price on the y-axis. The supply line goes through (60, 65), (75, 70), (100, 95). The demand line goes through (60, 100), (75, 70), and (80, 60).
Using the above supply/demand graph, what is the price at the point of equilibrium?
a.
100
b.
75
c.
70
d.
55

Answer 1

c. 70

Both the supply and demand lines pass through (75, 70), so the equilibrium price is 70.