Market for a Can of Soda?

Question

Use the following to answer question 20:

Table: Market for a Can of Soda

Price ($/unit)-Quantitydemanded (units)-Quantitysupplied (units)

0.50 - 10 - 7

0.75 - 8 - 8

1.00 - 6 - 9

1.25 - 4 - 10

1.50 - 2 - 11

20. (Table: Market for a Can of Soda) If the government does not impose a price control, the price of a can of soda will equal:

A) $0.50

B) $0.75

C) $1.00

D) $1.25

Answer 1

The answer is B because the market price is set where market demand is equal to market supply. (8=8)

Answer 2

B