Equilibrium Price of Cell Phones
What is the equilibrium price for cell phones?
Based on the supply and demand schedules provided, how much would a seller charge to sell cell phones at their equilibrium price?
Equilibrium Price for Cell Phones
The equilibrium price for cell phones would be $300.
In economics, the equilibrium price is the price at which the quantity supplied of a good or service is equal to the quantity demanded. This means that at the equilibrium price, there is neither a shortage nor a surplus of the product in the market.
In this case, from the given supply and demand schedules for cell phones, we can see that at a price of $300, the quantity supplied is 275 and the quantity demanded is also 275. This indicates that at $300, the number of cell phones supplied by sellers matches the number of cell phones demanded by buyers.
Therefore, a seller would charge $300 if they wanted to sell cell phones at the equilibrium price. This price ensures that the market clears, with all cell phones produced being purchased by consumers without any excess supply.
Conclusion:The equilibrium price for cell phones is $300, at which the quantity supplied equals the quantity demanded, resulting in an efficient allocation of resources in the market.