Use the following demand and supply functions to answer this question; Qd=100-2p; Qs=60+2p ; If a...
Use the following demand and supply functions to answer this question; Qd=100-2p; Qs=60+2p ; If a ceiling price of $8 is established by the government, then
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a new equilibrium price will emerge. |
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a shortage of 84 will result. |
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a shortage of 8 will result. |
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a surplus of 8 will result. |
Homework Answers
IF the price ceiling is $8 the the demand will be 100 - 2(8) = 100 -16 = 84. And the supply will be 60 + 2(8) = 60 + 16 = 76.
Demand is 84 and the supply is 76. As the demand is more there will be a shortage of 8 will result. The answer is "C", A shortage of 8 will result.
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