According to this graph, what would the approximate equilibrium price be for widgets? A. $0.85
B. $1.50
C. $2.50
D. $4.70

C. $2.50

Explanation:

Equilibrium price is the market price at which suppliers and manufacturers are able and ready to supply to the market a certain quantity of goods of services, of which the buyers or consumers are willing and able to demand and purchase same quantity at that particular price.

On the graph given, the equilibrium price is where the demand and supply curve if widgets intersects. That is approximately $2.50.

At $2.50, the quantity of widgets supplied is equal to the quantity of widgets demanded.

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