32. Chapter 4 Market demand is given as Qd = 150 – 3P. Market supply is...

Question

Question

32. Chapter 4

Market demand is given as Qd = 150 – 3P. Market supply is given as Qs = 2P. What would result if the market price were $25? Show your work.

Answer 1

Answer #1

Answer

Option a

a shortage of 25

======

P=25

then

Qd=150-3*25=75

Qs=2*25=50

Qd>Qs means there is a shortage

Shortage =Qd-Qs=75-50=25 units

Answer 2

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