Homework SourseThe widget market is competitive and includes no transaction
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $26, $14, $10, $5, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $14, $26, $34, and $42 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
PRICE
($ PER WIDGET)
QUANTITY DEMANDED
(WIDGETS)
QUANTITY SUPPLIED
(WIDGETS)
In this market, the equilibrium price will be ______ per widget, and the equilibrium quantity will be _______(IN # OF WIDGETS) widgets.
| PRICE ($ PER WIDGET) | QUANTITY DEMANDED (WIDGETS) | QUANTITY SUPPLIED (WIDGETS) |
|---|---|---|
| $2 | ||
| $5 | ||
| $10 | ||
| $14 | ||
| $26 | ||
| $34 | ||
| $42 |
Solution
In this market, the equilibrium price will be $14 per widget (where demand = supply), and the equilibrium quantity will be 4 widgets.
| PRICE | QUANTITY DEMANDED | QUANTITY SUPPLIED |
| ($ PER WIDGET) | (WIDGETS) | (WIDGETS) |
| $2 | 5 | 1 |
| $5 | 5 | 2 |
| $10 | 5 | 3 |
| $14 | 4 | 4 |
| $26 | 3 | 5 |
| $34 | 2 | 5 |
| $42 | 1 | 5 |
