Refer to Table 10-2. What is the equilibrium quantity of output in this market?

• A. The quantity at which quantity demanded equals quantity supplied.
• B. The sum of all quantities supplied and demanded.
• C. The lowest quantity demanded in the table.
• D. The highest quantity supplied in the table.

Answer: (A)

Verified step by step guidance

1. Understand that the equilibrium quantity is the quantity at which the quantity demanded equals the quantity supplied. This is the fundamental condition for market equilibrium.
2. Look at the table (Table 10-2) and identify the quantities demanded and quantities supplied at different price levels.
3. Compare the quantity demanded and quantity supplied for each price to find the price where these two quantities are equal.
4. Once you find the price where quantity demanded equals quantity supplied, note the corresponding quantity. This quantity is the equilibrium quantity.
5. Verify that at this equilibrium quantity, there is no excess demand or excess supply, confirming that the market is in balance.