The equilibrium price for AquaPod is $40. At a price of $35, there will be a shortage. The quantity supplied at a price of $40 is equal to the quantity demanded. At a price of $45, there will be a surplus.
The graph shows supply and demand curves for the AquaPod, a digital music player for scuba divers.
The equilibrium price is the price at which the quantity demanded equals the quantity supplied.
In this case, the equilibrium price is $40. At a price of $35, the quantity demanded will be greater than the quantity supplied, resulting in a shortage.
The quantity demanded at a price of $35 can be determined by finding the corresponding point on the demand curve.
At a price of $40, the quantity supplied will be equal to the quantity demanded, resulting in an equilibrium.
The quantity supplied at a price of $40 can be determined by finding the corresponding point on the supply curve. If the price is set at $45, the quantity supplied will exceed the quantity demanded, resulting in a surplus.
The probable question may be:
The graph shows supply and demand curves for the AquaPod, a digital music player for scuba divers.
What is the equilibrium price? The equilibrium price 40
What will happen if the price is set at $35?
How many AquaPods are demanded at a price of $35?
How many AquaPods are supplied at a price of $40?
What will happen if the price is set at $45?