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Use the table to answer the 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

$10
10 dollars

$40
40 dollars

$20
20 dollars

$30

1 answer

The equilibrium price is where the quantity supplied equals the quantity demanded.

From the table:

  • 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. (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.