Question

The figure above shows a store’s supply-demand graph for lawn chairs if the stores make $800 by selling lawn chairs which of the following is possible valid price for them?

a.) $50
b.) $40
c.) $25
d.) $20

Answer 1

d.) $20

Explanation:

Answer 2

Answer: Option 'b' is correct.

Explanation:

Since we have given the figure showing store's supply demand graph for lawn chairs.

Profit made by selling lawn chairs by the store = $800

Using the graph , we conclude that

Demand curve and supply curve intersect at (25,40)

Here, y- axis denotes the price of commodity.

x - axis denotes the quantity of commodity.

So, the possible valid price for them would be $ 40.

Hence, Option 'b' is correct.