Answer to Question #54525 in Microeconomics for sharina
Rose sellers withhold 60 roses from the market this week because they expect the demand to be higher because Mothers day is next week. What is the price of a rose this weekend?
Quantity demanded Quantity supplied
$6.00 150 60
$7.00 100 100
$8.00 70 130
$9.00 50 150
The price will settle at the level where the number of roses which can be bought by customers (quantity demanded) is equal to the number of roses which can be sold by sellers for the particular price (quantity supplied). As it can be observed from the data, the quantity demanded is equal to the quantity supplied in case of $7 per rose.