Question

The table contains information on the price per month and the monthly demand and supply of online music streaming

subscriptions.
Price Quantity demanded (thousands)
$11.30
380
$11.50
320
$11.70
280
$11.90
230
What are the equilibrium price and quantity?
Equilibrium price: $
Equilibrium quantity:
Quantity supplied (thousands)
230
250
280
350
thousand subscriptions

Answer 1

The equilibrium price for online music streaming subscriptions is $11.70, and the equilibrium quantity is 280 thousand subscriptions.

Step-by-step explanation:

To identify the equilibrium price and quantity for online music streaming subscriptions, we need to find the price at which the quantity demanded equals the quantity supplied. Based on the given information, we can deduce the equilibrium by analyzing the demand and supply schedules.

Demand and Supply Schedule:

• Price: $11.30, Quantity Demanded: 380, Quantity Supplied: 230
• Price: $11.50, Quantity Demanded: 320, Quantity Supplied: 250
• Price: $11.70, Quantity Demanded: 280, Quantity Supplied: 280
• Price: $11.90, Quantity Demanded: 230, Quantity Supplied: 350

We can see that the equilibrium occurs at a price of $11.70 where the quantity demanded equals the quantity supplied, both at 280,000 subscriptions.