The correct answer is $8
Step-by-step explanation:
The equilibrium price is reached when the demand and supply are the same. This means the amount wanted by consumers (demand) is equal to the amount produced (supply). This can be determined by analyzing the quantity demanded and supplied at different prices. In the case of cakes, the chart shows the equilibrium price is $8 because at this price there is equilibrium or balance between supply and demand. After all, the units demanded and supplied are 90; while at different prices the quantity demanded and the quantity supplied are not the same.