Purchase Solution

equilibrium price

Not what you're looking for?

Ask Custom Question

Please help answer the following three questions based on the data given:

Data:
Bushels demanded per month Price per bushel Bushels supplied per month
45 $5 77
50 4 73
56 3 68
61 2 61
67 1 57

Questions:
1. Refer to the above data, what is equilibrium price?
2. If the price in this market is $4, can bushels suppliers sell all their bushels?
3. If the price was initially $4, and free to fluctuate, what the changes in price and supply we expect?

Purchase this Solution

Solution Summary

This posting helps answers a microeconomics question about demand and supply. The equilibrium price is exemplified in this solution. Brief solutions are given for each of the problems.

Solution Preview

Hello! Here are your answers.

Question 1: Refer to the above data, what is equilibrium price?

The equilibrium price is the price such that quantity demanded is equal to quantity supplied. From the table, it's clear that the equilibrium price is $2: at this price both quantity demanded and supplied are 61 ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.