Question

The coordinate grid below shows the graph of supply and

demand functions for the sales of wooden chairs. For the
functions, x represents the number of chairs, in hundreds,
and y represents the price of each chair, in dollars.
The equilibrium point for the functions can be found by
locating the point where the two functions are equal. Which
of these appears to be the number of chairs, in hundreds,
that must be sold to achieve equilibrium?
20
35
40
90

Answer 1

A. 20

Explanation:

The two functions are equal at the point where the line of both function intercept. At this point, equilibrium is achieved.

The number chairs demanded and the number of chairs supplied are equal at this point.

Both lines intersect at x = 20. This means 20 (in hundreds) chairs must be sold for equilibrium to be achieved.