1. Assume the demand schedule for a good is given by: p = 1 - 0.5*q. The supply schedule is given by: p = 0.5*q. What is the equilibrium price and quantity (p,q)?
A.
p=0.5 and q=0.5
B.
p=1 and q=0.5
C.
p=0.25 and q=1
D.
p=1 and q=0.25
E.
p=0.5 and q=1