equilibrium price
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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?
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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.
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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 ...
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