question archive The following table contains data pertaining to the market for mountain bikes
The following table contains data pertaining to the market for mountain bikes
Subject:MarketingPrice:2.88 Bought3
The following table contains data pertaining to the market for mountain bikes. Use this data to answer the questions below:
| Price | Quantity Supplied (Weekly) | Quantity Demanded (Weekly) |
|---|---|---|
| $100 | 1000 | 4000 |
| 200 | 2000 | 3500 |
| 300 | 3000 | 3000 |
| 400 | 4000 | 2500 |
| 500 | 5000 | 2000 |
The equilibrium price in the market is:
a. 100
b. 200
c. 300
d. 400
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The correct answer is c. 300.
The equilibrium price is the price of a product when the market is in equilibrium. We say a market is in equilibrium when the quantity demanded of a good is equal to its quantity supplied. Hence, this condition is met at a price of $300 when both the quantity demanded and quantity supplied are equal to 3000.
