The demand and supply curves for the Pure Confectionery Company’s protein bars are shown in the diagram below - Junior Cycle Business Studies - Question 18 - 2019
Question 18
The demand and supply curves for the Pure Confectionery Company’s protein bars are shown in the diagram below.
On the diagram below show the equilibrium price and q... show full transcript
Worked Solution & Example Answer:The demand and supply curves for the Pure Confectionery Company’s protein bars are shown in the diagram below - Junior Cycle Business Studies - Question 18 - 2019
Step 1
Equilibrium price:
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Answer
The equilibrium price can be determined by locating the point where the demand and supply curves intersect. In the provided diagram, this intersection occurs at a price of €3.
Step 2
Equilibrium quantity:
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Answer
At the equilibrium price of €3, the corresponding equilibrium quantity is 20,000 protein bars, which can also be observed at the intersection point on the graph.
Step 3
Price:
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Answer
To identify the price at which the Pure Confectionery Company would be prepared to supply 25,000 protein bars, follow the quantity of 25,000 (or 25 on the x-axis) to the supply curve. This corresponds to a price of €4.
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