Price $

Qd

Qs

1

90

20

2

70

30

3

50

50

4

45

80

5

43

120

3. Using the table above, the equilibrium quantity is

Question

Price $

Qd

Qs

1

90

20

2

70

30

3

50

4

45

80

5

43

120

3. Using the table above, the equilibrium quantity is

BlackTom AI · Accepted Answer

To understand the equilibrium quantity, first identify the price levels and the corresponding quantities demanded (Qd) and supplied (Qs) from the table.

Option 1: 20 units. This value appears to be associated with a relatively high price level, where the quantity demanded is typically low. However, at equilibrium we need Qd to equal Qs; simply picking a low quantity like 20 ignores the paired Qd/Qs data at that price and does not reflect where market forces balance.

Option 2: 30 units. Similar to 20, 30 units would correspond to a higher price end with lower demand. But for equilibrium we must compare actual Qd and Qs at the same price. If the table shows Qd and Qs diverging at this price, then 30 cannot be the equilibrium quantity unless Qd = Qs = 30 at that exact price, which the data does not indicate.

Option 3: 50 units. Look at the row where the two numbers align: a price where Qd equals 50 and Qs also equals 50. This is a classic equilibrium signal: the quantity that consumers want to buy at that price matches the quantity firms are willing to supply. When Qd = Qs = 50, there is no inherent pressure for price to move, so the market clears.

Option 4: 80 units. This higher quantity would usually correspond to a much lower price, where demand is stronger and supply may be higher as well, but the table shows Qd and Qs at that price do not simultaneously reach 80. If Qd = 80 but Qs ≠ 80 (or vice versa), the market is not in equilibrium at that level.

Option 5: 120 units. The largest quantity in the table would align with the lowest price, but unless Qd and Qs both equal 120 at that price, this is not an equilibrium point. In most data sets, such a high quantity is paired with a mismatch between Qd and Qs, creating excess supply or demand rather than market clearing.

Putting it together, the only price-quantity pair that satisfies the equilibrium condition Qd = Qs is the one where both demand and supply are 50 units. Since equilibrium requires the two sides to match, other options fail because they do not present equal quantities in the same row.

Thus, the equilibrium quantity is the value at the equal Qd and Qs row, which corresponds to 50 units.

25FAL-ECO-8-48630 Midterm Exam [ Thu, 10/16 by 11:59pm] MODULES[1 TO 5]

Price $ Qd Qs 1 90 20 2 70 30 3 50 50 4 45 80 5 43 120 3. Using the table above, the equilibrium quantity is

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