Question

7. Refer to the diagram. The equilibrium price
and quantity in this market will be:
A $1.00 and 200
B. $1.60 and 200
C. $.50 and 130
D. $1.60 and 290

Answer 1

A. $1.00 and $200, where both lines meet in the middle is called the equilibrium price, this is where they make the most bang for their buck