Refer to Table 4-6. The equilibrium price and quantity, respectively, are:

• A. the highest price listed in the table and the lowest quantity supplied
• B. the price at which quantity demanded equals quantity supplied, and the corresponding quantity
• C. the price at which quantity supplied exceeds quantity demanded, and the corresponding quantity
• D. the lowest price listed in the table and the highest quantity demanded

Answer: (B)

Verified step by step guidance

1. Understand the concept of market equilibrium: it occurs where the quantity demanded equals the quantity supplied.
2. Identify the prices and corresponding quantities demanded and supplied from the table (Table 4-6).
3. For each price, compare the quantity demanded and quantity supplied to find where they are equal.
4. The equilibrium price is the price at which quantity demanded equals quantity supplied.
5. The equilibrium quantity is the quantity at that equilibrium price.