Based on the supply and demand schedule for bluefin tuna, at which price will the market for bluefin tuna be in equilibrium?

• A. At the price where quantity demanded equals quantity supplied
• B. At the price where quantity demanded is greater than quantity supplied
• C. At the lowest price listed in the schedule
• D. At the price where quantity supplied is greater than quantity demanded

Answer: (A)

Verified step by step guidance

1. Understand the concept of market equilibrium: it occurs at the price where the quantity demanded by consumers equals the quantity supplied by producers.
2. Examine the supply and demand schedule for bluefin tuna, identifying the quantities demanded and supplied at each listed price.
3. Compare the quantity demanded and quantity supplied at each price point to find where they are equal.
4. Recognize that at this price, there is no shortage or surplus, meaning the market clears perfectly.
5. Conclude that the equilibrium price is the one where quantity demanded equals quantity supplied, not where one is greater than the other or simply the lowest price.