A graph has quantity on the x-axis and price (dollars) on the y-axis. A supply line goes through (20, 25), (40, 40), (60, 55). A demand line goes through (15, 85), (60, 55), (90, 35).
A store’s supply/demand graph for MP3 players is shown above. If the price is at the equilibrium point, how much money will the store make by selling MP3 players?
a.
$1,275
b.
$1,600
c.
$3,150
d.
$3,300
Answers
Answered by
2
Option D. $3300 will be the answer.
Step-by-step explanation:
Although the graph is not given in this question but going through the points defining quantity on x-axis and price on y-axis we find,
→ A common point (60, 55) on demand and supply lines where these lines intersect each other.
Therefore, by the definition of the equilibrium of supply/demand, the given point (60, 55) will be the equilibrium.
Since money earned (revenue) by the store = MP3 supplied × Cost of one MP3
Therefore, revenue generated by the store = 60×55 = $3300
Option D. will be the answer.
Learn more about the retail price and cost price from https://brainly.in/question/3842000
Answered by
0
Answer: D. 3,300 on E 2020
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