To find the equilibrium price where the quantity supplied equals the quantity demanded for cell phones, we must compare the supply and demand schedules and identify the price at which these quantities match.
Let's analyze the given supply and demand schedules:
Supply Schedule:
- At \[tex]$100, the quantity supplied is 50.
- At \$[/tex]200, the quantity supplied is 100.
- At \[tex]$300, the quantity supplied is 175.
- At \$[/tex]400, the quantity supplied is 275.
- At \[tex]$500, the quantity supplied is 400.
Demand Schedule:
- At \$[/tex]100, the quantity demanded is 400.
- At \[tex]$200, the quantity demanded is 375.
- At \$[/tex]300, the quantity demanded is 350.
- At \[tex]$400, the quantity demanded is 275.
- At \$[/tex]500, the quantity demanded is 175.
Now, look for the price where the quantity supplied equals the quantity demanded:
1. At \[tex]$100:
- Quantity supplied: 50
- Quantity demanded: 400
- Not equal
2. At \$[/tex]200:
- Quantity supplied: 100
- Quantity demanded: 375
- Not equal
3. At \[tex]$300:
- Quantity supplied: 175
- Quantity demanded: 350
- Not equal
4. At \$[/tex]400:
- Quantity supplied: 275
- Quantity demanded: 275
- Equal (This is the equilibrium price)
5. At \[tex]$500:
- Quantity supplied: 400
- Quantity demanded: 175
- Not equal
The price at which the quantity supplied equals the quantity demanded is found at \$[/tex]400.
Therefore, if a seller wanted to sell cell phones at their equilibrium price, he or she would charge \$400.
