which the quantity demanded of a good or service at a particular price is equal to the quantity supplied at that price. Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal. Study the table figure below, then address the questions that follow FIGURE 6.1 KAREN'S MARKET DEMAND AND SUPPLY SCHEDULE At prices above $6, quantity sup- Price per Quantity Quantity plied exceeds quantity demanded. Salad ($) Demanded Supplied 6 At the price of $6, the quantity 10 10 40 demanded and the quantity sup- 8 15 a - 35 plied are equal. C At prices below $6, the quantity 6 25 (b- 25 demanded exceeds the quantity 4 35 ( C 15 supplied. 2 40 Only at the equilibrium price of $6 10 are the quantity demanded and the quantity supplied equal. ANALYZE TABLES 1. What is the difference between quantity supplied and quantity demanded when the price is $10? What is the difference when the price is $2? 2. How does this market demand and supply schedule illustrate the laws of demand and supply? Graphical representation of the Market Demand and Supply Schedule FIGURE 6.2 MARKET DEMAND AND SUPPLY CURVES