Scenario 2.1:
The demand for books is: Q d = 120 - P
The supply of books is: Q s = 5P
-Refer to Scenario 2.1. If P = $15, which of the following is true?
A) There is a surplus equal to 30.
B) There is a shortage equal to 30.
C) There is a surplus, but it is impossible to determine how large.
D) There is a shortage, but it is impossible to determine how large.

Question

Quizplus · Accepted Answer

If P = $15, then Q_d = 120 - 15 = 105 and Q_s = 5(15) = 75. This means that there is a shortage of 105 - 75 = 30 books. Therefore, choice B is correct.

Scenario 2.1: The Demand for Books Is: Qd = 120 - P

Scenario 2.1: The Demand for Books Is: Q_d = 120 - P