In a competitive market, the equilibrium price is the price at which the quantity demanded equals the quantity supplied. Given the following possible prices, which one represents the market equilibrium price?

• A. \$30
• B. \$9
• C. \$10
• D. \$8

Answer: (C)

Verified step by step guidance

1. Understand that the market equilibrium price is the price at which quantity demanded equals quantity supplied.
2. Identify or obtain the demand and supply schedules or functions that show quantity demanded and quantity supplied at different prices.
3. Compare the quantities demanded and supplied at each given price (\$30, \$9, \$10, \$8) to see where they are equal.
4. The price where quantity demanded equals quantity supplied is the equilibrium price.
5. Confirm that at \$10, the quantity demanded equals the quantity supplied, making it the market equilibrium price.