Market demand is given as Qd = 300 - 0.5P. Market supply is given as Qs = 50 + 2P. What would result if the market price were $50?

Name: Market demand is given as Qd = 300 - 0.5P. Market supply is given as Qs = 50 + 2P. What would result if the market price were $50?
Brand: Quizplus
Rating: 4.7 (51 reviews)

Question

Quizplus · Accepted Answer

Substitute P = 50 in both demand and supply equations:
Qd = 300 - 0.5(50) = 275
Qs = 50 + 2(50) = 150
At a market price of $50, quantity demanded (Qd = 275) exceeds quantity supplied (Qs = 150), resulting in a shortage of (Qd - Qs) = 125.

Market Demand Is Given as Qd = 300 - 0