Question

The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $20, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $20, $32, and $44 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Price Quantity Demanded Quantity Supplied
($ per widget) (widgets) (widgets)
$2
$4
$8
$12
$20
$32
$44
In this market, the equilibrium price will beper widget, and the equilibrium quantity will be (0 or 5 or 2 or 1 or 3 or 4) widgets.

Answer 1

Answer:

Price            Quantity Demanded            Quantity Supplied

$2                        5                                            1

$4                        5                                            2

$8                        5                                            3

$12                       4                                            4

$20                      3                                            5

$32                      2                                            5

$44                      1                                             5

the equilibrium price is $12 with 4 units demanded and supplied