Use the table to answer the question.

Question

Price Quantity Supplied Quantity Demanded
$10 1,000 2,500
$20 2,000 2,000
$30 3,000 1,500
$40 4,000 1,000
The equilibrium price for this market is _____.

(1 point)
Responses

$40
40 dollars

$20
20 dollars

$30
30 dollars

$10

Answer 1

The equilibrium price is the price at which the quantity supplied equals the quantity demanded.

From the table provided:

• At $10, quantity supplied is 1,000 and quantity demanded is 2,500 (not in equilibrium).
• At $20, quantity supplied is 2,000 and quantity demanded is 2,000 (in equilibrium).
• At $30, quantity supplied is 3,000 and quantity demanded is 1,500 (not in equilibrium).
• At $40, quantity supplied is 4,000 and quantity demanded is 1,000 (not in equilibrium).

Therefore, the equilibrium price for this market is $20.