Question

Use the table below to answer the question. Price Quantity Supplied of T-shirts Quantity Demanded of T-shirts $5 0 300 $10 100 100 $25 300 50 $50 400 0 The equilibrium price for T-shirts is _____. $5 $10 $25

Answer 1

Answer:

The equilibrium price for T-shirts is $10

Explanation:

The equilibrium price refers to the price at which the quantity demanded equals quantity supplied as an equilibrium is a point where the market demand is met by market supply at a certain price. We can see that at price $5, the market is willing to supply 0 T-Shirts while the quantity demanded at this price is 300. However, at price $10, the market is supplied with 100 T-Shirts and the quantity demanded in market at this price is also 100. Thus the market is in equilibrium when price is $10.