Question

From the following demand and supply position at various prices, find the equilibrium price.

Price	Demand per month	Supply price month
$10$	$5000$	$2000$
$12$	$4000$	$3000$
$14$	$3500$	$3500$
$16$	$2000$	$4250$

• A. Rs. $10$
• B. Rs. $12$
• C. Rs. $14$
• D. Rs. $16$

Answer 1

The correct option is C Rs. $14$

Equilibrium price is the price at which the quantity demanded is equal to the quantity supplied. Hence, in the given table, the price at which demand and supply are equal is Rs.14. Hence, it is the equilibrium price.