The following table shows the market demand schedule and sup

The following table shows the market demand schedule and supply schedule for notebooks. Price (S per Quantity Demanded (units) Quantity Supplied (units) 20 16 14 12 10 10 12 4. 17 20 25 Refer to the table above. At what price does the market for notebooks clear? OA $4 OC. S2 Click to select your answer

Solution

Clearing the market means a condition where the demand and supply of the goods are same. That is also called the equilibrium in the market.

When the price is $4 the market clears. I.e. the demand is equal to the supply. the answer is \"A\".