Question

The next day, you charge $3.50 for each bracelet. You have a supply of 30 bracelets, and exactly 30 customers demand them. At the end of the day, there is no excess demand or excess supply. So, $3.50 must be the _____.

Answer 1

Answer:  Equilibrium price

The equilibrium price is that price at which the quantity of products supplied by producers is exactly equal to the quantity demanded by consumers.

In economic theory, the market forces of demand and supply generally tend to drive prices to the equilibrium.

If the price of product is too low, then excess demand for that product will drive prices higher until quantity demanded is exactly equal to quantity supplied. Conversely, if the price of a product is too, high, there will be no demand and the price falls until quantity demanded is exactly equal to quantity supplied and reaches a new equilibrium.

Answer 2

Answer:

Equilibrium price...............................