Given the following table of demand and supply schedules, what is the equilibrium price?| Price | Quantity Demanded | Quantity Supplied ||-------|-------------------|-------------------|| 2 | 100 | 40 || 4 | 80 | 80 || 6 | 60 | 120 || 8 | 40 | 160 |Select the correct equilibrium price from the options below.

• A. 6
• B. 8
• C. 2
• D. 4

Answer: (D)

Verified step by step guidance

1. Understand that the equilibrium price is the price at which the quantity demanded equals the quantity supplied.
2. Examine the table and identify the price points where quantity demanded and quantity supplied are listed.
3. Compare the quantity demanded and quantity supplied at each price to find where they are equal.
4. Note that at price \$4\(, the quantity demanded is \)80\( and the quantity supplied is also \)80$, indicating equilibrium.
5. Conclude that the equilibrium price is the price where demand equals supply, which is \$4$ in this case.