Question

A graph has quantity on the x-axis and price (dollars) on the y-axis. A supply line goes through (0, 30) and (40, 70). A demand line goes through (0, 80) and (40, 70).
The supply/demand graph for bicycle helmets in a certain market is shown above.Find the price when supply and demand are in equilibrium.
a.
$30
b.
$40
c.
$70
d.
$80

Answer 1

Supply and demand are in equilibrium at their intersection, which is (40, 70). So the equilibrium price is $70.

Answer: c. $70