Question

A store’s supply/demand graph for ceiling fans is shown above. If the price is at the equilibrium point, how much money will the store make selling ceiling fans?

Answer 1

We know that

equilibrium point is a point where demand curve  and supply curve (S) intersect each other

so, D=S

so, equilibrium point is at x=40

and price at that point is p=45

we know that

revenue = price*quantity

revenue = 40*45

$R=40*45$

$R=1800$

so, the store will make $1800 by selling ceiling fans...........Answer