You’re given the following supply and demand tables:

(LO5-5)

a. What is equilibrium price and quantity in a market system with no interferences?

b. If this were a third-party-payer market where the consumer pays $2, what is the quantity demanded?
What is the price charged by the seller?

c. What is total spending in the two situations described in a and b?

Transcribed Image Text:

Demand Supply P Q P $0 1,200 $0 0 2 900 2 0 4 600 4 150 6 300 6 300 8 0 8 600 10 0 10 600 12 0 12 750 14 0 14 900