Answered

Examine the supply and demand schedules for laptops. How much would a seller charge if he or she wanted to sell laptops at their equilibrium price?

\begin{tabular}{|l|l|}
\hline Price of laptops & \multicolumn{1}{|c|}{ Quantity supplied } \\
\hline [tex]$\$[/tex]300[tex]$ & 100 \\
\hline $[/tex]\[tex]$400$[/tex] & 300 \\
\hline [tex]$\$[/tex]500[tex]$ & 500 \\
\hline $[/tex]\[tex]$600$[/tex] & 700 \\
\hline [tex]$\$[/tex]700[tex]$ & 900 \\
\hline
\end{tabular}

\begin{tabular}{|l|l|}
\hline \multicolumn{1}{|c|}{ Price of laptops } & \multicolumn{1}{c|}{ Quantity demanded } \\
\hline $[/tex]\[tex]$300$[/tex] & 450 \\
\hline [tex]$\$[/tex]400[tex]$ & 300 \\
\hline $[/tex]\[tex]$500$[/tex] & 200 \\
\hline [tex]$\$[/tex]600[tex]$ & 150 \\
\hline $[/tex]\[tex]$700$[/tex] & 125 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To determine the equilibrium price, where the quantity supplied equals the quantity demanded, we'll examine the two schedules: one representing the quantity supplied at different prices and the other representing the quantity demanded at those same prices.

Here is the data provided:

Quantity Supplied:
- At \[tex]$300, the quantity supplied is 100 laptops. - At \$[/tex]400, the quantity supplied is 300 laptops.
- At \[tex]$500, the quantity supplied is 500 laptops. - At \$[/tex]600, the quantity supplied is 700 laptops.
- At \[tex]$700, the quantity supplied is 900 laptops. Quantity Demanded: - At \$[/tex]300, the quantity demanded is 450 laptops.
- At \[tex]$400, the quantity demanded is 300 laptops. - At \$[/tex]500, the quantity demanded is 200 laptops.
- At \[tex]$600, the quantity demanded is 150 laptops. - At \$[/tex]700, the quantity demanded is 125 laptops.

Next, we will compare the quantities at each price point to find the equilibrium price:

1. At \[tex]$300: - Quantity supplied: 100 laptops - Quantity demanded: 450 laptops - The quantity supplied is less than the quantity demanded (not in equilibrium). 2. At \$[/tex]400:
- Quantity supplied: 300 laptops
- Quantity demanded: 300 laptops
- The quantity supplied equals the quantity demanded (this is in equilibrium).

3. At \[tex]$500: - Quantity supplied: 500 laptops - Quantity demanded: 200 laptops - The quantity supplied is greater than the quantity demanded (not in equilibrium). 4. At \$[/tex]600:
- Quantity supplied: 700 laptops
- Quantity demanded: 150 laptops
- The quantity supplied is greater than the quantity demanded (not in equilibrium).

5. At \[tex]$700: - Quantity supplied: 900 laptops - Quantity demanded: 125 laptops - The quantity supplied is greater than the quantity demanded (not in equilibrium). From the above analysis, the equilibrium price is when the price is \$[/tex]400. At this price, the quantity supplied equals the quantity demanded, both at 300 laptops.

Thus, a seller should charge \$400 per laptop to sell them at the equilibrium price.

Other Questions