A) 1250 units
B) 23250 units
C) 52350 units
D) 2500 units
Correct Answer: B
Solution :
The Equilibrium Quantity is the quantity of a good or service bought at the equilibrium price. The equilibrium quantity is the quantity produced and bought where the supply and demand curves intersect. In other words, equilibrium is when Demand = Supply According to the question, 37000 - 11P = 12000 + 9P or, 25000 = 20 P, or P = 1250 Putting the value of P either in Demand or Supply values give the equilibrium quantity So, Equilibrium Quantity\[=37000-(11\times 1250)\] \[37000-13750=23,250\]units
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