Question

Suppose that the supply schedule for tacos shows 300 tacos per day supplied at a price of $2.00 apiece. What must the demand schedule for tacos at that price show for the market to be in equilibrium?

Answer 1

Answer:

300 tacos as well

Explanation:

Market equilibrium is defined as the point where market supply and market demand are exactly the same.

So if the supply schedule shows 300 tacos per day at a price of $2.00, for this point to be the market equilibrium, the demand schedule has to show 300 tacos per day.

This also means that $2.00 is the equilibrium price in this market, that is to say, the price at which the supply and demand of tacos equalize.