Map Sapling Learning macmillan learning The following table

Map Sapling Learning macmillan learning The following table shows information on the conditions of demand and supply for online music files, where the quantity of online music is measured in thousands of mp3 file:s Price Quantity Demanded (thousands) 385 325 285 235 Quantity Supplied $0.50 $0.70 $0.90 $1.10 (thousands) 235 255 285 355 What are the equilibrium price and quantity? Number Number Equilibrium quantity thousandEquilibrium price: $

Solution

Equilibrium Price and quantity are decided where demand and supply forces are equal.

Price $ .90 makes both demand and supply equal.

Hence, Equilibrium Quantity is = 285

Equilibrium Price is = $0.90