QUESTION 10 Table 4-10 The following table shows the number of cases of water ea

Question

QUESTION 10 Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed Price per case Alpine Springs Brook Mountain Cascade Waters Dew Good cases 00 cases 00 cases 300 cases cases cases cases 60 cases 120 cases 180 cases 100 cases 200 cases 00 cases 30 cases 9.00 120 cases Refer to Table 4-10. If the four suppliers listed are the only suppliers in this market and the market demand schedule is: rice Quantity Demanded 00 1200 3.00 6.00 9.00 the equilibrium price and quantity are S0.00 and 1200 cases O $3.00 and 300 cases O $6.00 and 600 cases $9.00 and 600 cases Click Save and Submit to save and submit. Click Save All Answers to save all answers

Explanation / Answer

Correct option is (3).

Market supply is the horizontal summation of individual supply schedules, derived as below.

In equilibrium, market demand equals market supply. So, equilibrium quantity is 600 & price is $6.

Price ($) Alpine's Supply Brook's Supply Cascade's Supply Dew's Supply Market Supply Market Demand 0 0 0 0 0 0 1200 3 100 40 60 100 300 900 6 200 80 120 200 600 600 9 300 120 180 300 900 300

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