Question

When P = $65, the quantity demanded of a good is 80 units, and the quantity supplied of the good is 40 units. For every $10 increase in the price of this good, quantity demanded falls by 10 units and quantity supplied rises by 10 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units. a. $85; 50 b. $55; 30 c. $75; 50 d. $75; 70 e. $85; 60

Answer 1

The answer is: E) the equilibrium price is $85; and the equilibrium quantity is 60 units

Step-by-step explanation:

The equilibrium price of a demand and supply curve is the price where the quantity supplied of a product or service equals the quantity demanded of that product or service.

We start at a price of $65

Price Quantity demanded Quantity supplied

$65 80 units 40 units

$75 70 units 50 units

$85 60 units 60 units