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

\begin{tabular}{|l|l|}
\hline \multicolumn{1}{|c|}{ Price of cell phones } & \multicolumn{1}{c|}{ Quantity supplied } \\
\hline [tex]$\$[/tex] 100[tex]$ & 50 \\
\hline $[/tex]\[tex]$ 200$[/tex] & 100 \\
\hline [tex]$\$[/tex] 300[tex]$ & 175 \\
\hline $[/tex]\[tex]$ 400$[/tex] & 275 \\
\hline [tex]$\$[/tex] 500[tex]$ & 400 \\
\hline
\end{tabular}

\begin{tabular}{|l|l|}
\hline \multicolumn{1}{|c|}{ Price of cell phones } & \multicolumn{1}{c|}{ Quantity demanded } \\
\hline $[/tex]\[tex]$ 100$[/tex] & 400 \\
\hline [tex]$\$[/tex] 200[tex]$ & 375 \\
\hline $[/tex]\[tex]$ 300$[/tex] & 350 \\
\hline [tex]$\$[/tex] 400[tex]$ & 275 \\
\hline $[/tex]\[tex]$ 500$[/tex] & 175 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To determine the equilibrium price where the quantity supplied equals the quantity demanded, we need to compare the quantity supplied and the quantity demanded at each price level.

Let's examine the supply and demand schedules:

### Supply Schedule:
[tex]\[ \begin{array}{|c|c|} \hline \text{Price of cell phones (\$)} & \text{Quantity supplied} \\ \hline 100 & 50 \\ \hline 200 & 100 \\ \hline 300 & 175 \\ \hline 400 & 275 \\ \hline 500 & 400 \\ \hline \end{array} \][/tex]

### Demand Schedule:
[tex]\[ \begin{array}{|c|c|} \hline \text{Price of cell phones (\$)} & \text{Quantity demanded} \\ \hline 100 & 400 \\ \hline 200 & 375 \\ \hline 300 & 350 \\ \hline 400 & 275 \\ \hline 500 & 175 \\ \hline \end{array} \][/tex]

Next, we need to find the price at which the quantity supplied equals the quantity demanded.

We observe the following matched quantities:

- At [tex]\(\$100\)[/tex], Quantity Supplied (50) ≠ Quantity Demanded (400)
- At [tex]\(\$200\)[/tex], Quantity Supplied (100) ≠ Quantity Demanded (375)
- At [tex]\(\$300\)[/tex], Quantity Supplied (175) ≠ Quantity Demanded (350)
- At [tex]\(\$400\)[/tex], Quantity Supplied (275) = Quantity Demanded (275)
- At [tex]\(\$500\)[/tex], Quantity Supplied (400) ≠ Quantity Demanded (175)

From the above schedules, we see that the price at which the quantity supplied equals the quantity demanded is [tex]\(\$400\)[/tex] with both quantities being 275.

Therefore, if a seller wanted to sell cell phones at the equilibrium price, they would charge [tex]\(\$400\)[/tex].

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