Let's solve the problem step by step: ### Step 1: **Understand Equilibrium** - The equilibrium price and quantity occur where **quantity demanded equals quantity supplied**. ### Step 2: **Check the Table for Equilibrium** Let's compare the values for each price: | Price | Quantity Demanded | Quantity Supplied | |-------|-------------------|------------------| | $30 | 64 | 115 | | $25 | 76 | 110 | | $20 | 88 | 105 | | $15 | 100 | 100 | | $10 | 112 | 95 | ### Step 3: **Find the Matching Pair** - At **$15**, **Quantity Demanded = 100** and **Quantity Supplied = 100**. ### Step 4: **Write the Final Answers** - **Equilibrium price** is **$15**. - **Equilibrium quantity** is **100 units**. --- **Final Answers:** - The equilibrium price in this market is **$15**. - The equilibrium quantity in this market is **100 units**.

**1. Introduction** In economics, market equilibrium is a fundamental concept describing the point where the quantity of goods demanded by consumers equals the quantity supplied by producers at a particular price. This balance determines the market price, known as the equilibrium price, and the corresponding quantity traded, called the equilibrium quantity. Understanding how to identify this point involves analyzing demand and supply schedules, which are tabular representations of how quantity demanded and supplied vary with changing prices. These schedules help us visualize the relationship between price and quantity, facilitating the determination of the equilibrium point by pinpointing where demand equals supply. **Explanation:** The importance of understanding market equilibrium lies in its role in resource allocation. It indicates the most efficient price and quantity combination in a competitive market, ensuring neither excess supply nor excess demand. Recognizing the intersection point of demand and supply schedules allows economists and market participants to predict price stability and market behavior. --- **2. Presentation of Relevant Formulas and Representation of Given Data** **Formulas:** - **Equilibrium Condition:** \[ \text{Quantity Demanded} = \text{Quantity Supplied} \] - **Representation of Data:** Since the data are given in tabular form, the key task is to identify the row where demand equals supply. **Given Data:** | Price ($) | Quantity Demanded | Quantity Supplied | |------------|---------------------|-------------------| | 30 | 64 | 115 | | 25 | 76 | 110 | | 20 | 88 | 105 | | 15 | 100 | 100 | | 10 | 112 | 95 | **Explanation:** The core concept involves comparing demand and supply at each price to find where they are equal. The data provide specific quantities demanded and supplied at various prices, enabling direct comparison without requiring complex calculations. --- **3. A Detailed Step-by-Step Solution** **Step 1: Review the demand and supply data at each price point.** - At $30: Demand = 64, Supply = 115 → Not equal. - At $25: Demand = 76, Supply = 110 → Not equal. - At $20: Demand = 88, Supply = 105 → Not equal. - At $15: Demand = 100, Supply = 100 → Equal! - At $10: Demand = 112, Supply = 95 → Not equal. **Step 2: Identify the price where quantity demanded equals quantity supplied.** From the above, the only price where demand equals supply is **$15**, with both quantities being **100** units. **Step 3: Determine the equilibrium price and quantity.** - **Equilibrium Price:** $15 - **Equilibrium Quantity:** 100 units **Explanation:** By directly comparing the demand and supply at each price, it is evident that equilibrium occurs at $15, where the market's demand and supply curves intersect, leading to the same quantity traded. **Final Answer:** - The equilibrium price in this market is **$15**. - The equilibrium quantity is **100 units**. --- **Conclusion:** The market reaches equilibrium when the quantity demanded by consumers matches the quantity supplied by producers. In this scenario, that occurs at a price of **$15**, with an associated traded quantity of **100 units**. This point ensures market stability, with no tendency for the price to change assuming other factors remain constant. The analysis demonstrates how demand and supply schedules directly facilitate the identification of equilibrium conditions through simple comparison.