Question

Per Unit Price of Commodity X (Rs.)	Quantity Demanded of Commodity X (Units)	Quantity Supplied of Commodity X (Units)
10	50	110
20	60	100
30	70	90
40	80	80
50	90	70
60	100	60
70	110	50

On the basis of the table, equilibrium quantity is attained at ________.

• A. 100 units
• B. 110 units
• C. 90 units
• D. 80 units

Answer 1

Answer: (D)

80 units

Equilibrium is a state at which the quantity supplied is equal to the quantity demanded. Hence, neither buyers nor sellers want to change their behaviour. They are exact same. Hence, in the given illustration the quantity at which the equilibrium is attained is 80 units of commodity X.