Assume that the market for cell phones comprises two buyers and two se

Assume that the market for cell phones comprises two buyers and two sellers. The following table shows the demand and supply of cell phones at different prices. Using the information in the table, determine the market equilibrium price and quantity.

Price ($) Cell Phones Demanded (Buyer 1 ) Cell Phones Demanded (Buyer 2 )
10 100 80
20 80 65
30 75 50
40 60 45
50 30 30
60 20 22

Price ($) Cell Phones Supplied (Seller 1 ) Cell Phones Supplied (Seller 2 )
10 10 25
20 30 40
30 50 45
40 55 50
50 65 60
60 75 70

ANSWER

To determine the market equilibrium quantity and price, the first step requires the estimation of market demand and market supply of cell phones. The market demand can be estimated by summing the quantity demanded of each buyer at the different price levels. This is shown in the table below:

Price ($) Cell Phones Demanded (Buyer