Question

Where Q is the number of tires sold weekly and P is the price per tire. The equilibrium price and quantity can be calculated by solving for P and Q. What would be the equilibrium price and quantity in this tire market?

A) Price = $30, Quantity = 450
B) Price = $20, Quantity = 200
C) Price = $40, Quantity = 600
D) Price = $50, Quantity = 650

Answer 1

Without the supply and demand schedules, it is not possible to determine the correct equilibrium price and quantity for tires from the provided options.

Step-by-step explanation:

The question is asking for the equilibrium price and quantity in the tire market. Equilibrium in the context of supply and demand refers to the price and quantity where the quantity demanded by consumers equals the quantity supplied by producers. According to the principles explained in Chapter 3, equilibrium can be found without a graph by identifying the price level at which quantity demanded and quantity supplied are equal.

However, the question did not provide the actual demand and supply schedules to determine the equilibrium for tires. Therefore, based on the information given, it is not possible to select the correct equilibrium point from the provided options (A, B, C, D) as the necessary supply and demand data are absent.