Question

Question 7 (2 points)

What is the equilibrium price for backpacks?
Annual Supply and Demand for Backpacks (in Thousands)
Price
Quantity Demanded
Quantity Supplied
$40.00
14
0
$42.50
12
$45.00
11
$47.50
9
$50.00
$52.50
$55.00
$57.50
$60.00
* nN
$62.50
12
a
$40.00
b
$47.50
O
$52.50
O d
$57.50

Answer 1

Ok so for this, you need to think more in the economics/ math zone. I’m not sure if this is in the problem, but you need to find the avg price of one single backpack then Multiply that by the amount you are trying to find. I’m not sure if this is what you were asking, but I hope this helps :)

Step-by-step explanation:

Answer 2

The equilibrium price for backpacks is b. $47.50. This is the price at which the quantity demanded equals the quantity supplied in the given supply and demand schedule.

The equilibrium price for backpacks is $47.50. This price point corresponds to the intersection of the quantity demanded and the quantity supplied in the supply and demand schedule.

At $47.50, both the demand (buyers) and supply (sellers) are in balance, resulting in neither a surplus nor a shortage of backpacks in the market. It signifies the market-clearing price where the intentions of buyers and sellers align.

Prices above $47.50 could lead to a surplus, while prices below could result in a shortage, creating market forces that eventually guide the price back to equilibrium.

Option B is correct.