The widget market is competitive and includes no transaction costs. Five supplie
ID: 1147066 • Letter: T
Question
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $26, $14, $10, $5, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $14, $26, $34, and $42 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
PRICE
($ PER WIDGET)
QUANTITY DEMANDED
(WIDGETS)
QUANTITY SUPPLIED
(WIDGETS)
In this market, the equilibrium price will be ______ per widget, and the equilibrium quantity will be _______(IN # OF WIDGETS) widgets.
PRICE
($ PER WIDGET)
QUANTITY DEMANDED
(WIDGETS)
QUANTITY SUPPLIED
(WIDGETS)
$2 $5 $10 $14 $26 $34 $42Explanation / Answer
In this market, the equilibrium price will be $14 per widget (where demand = supply), and the equilibrium quantity will be 4 widgets.
PRICE QUANTITY DEMANDED QUANTITY SUPPLIED ($ PER WIDGET) (WIDGETS) (WIDGETS) $2 5 1 $5 5 2 $10 5 3 $14 4 4 $26 3 5 $34 2 5 $42 1 5Related Questions
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