Use the following information to answer the questions that follow.
Market for used cars:
Demand: Qd = 154,000 - 86 P
Supply: Qs = -100 + 14 P
-What would be the quantity demanded if a price ceiling is set at $2,000?
A) 100
B) 154,100
C) 1,541
D) 21,474
E) 18,000

Question

Quizplus · Accepted Answer

To find the quantity demanded at a price ceiling of $2,000, we need to set P = $2,000 in the demand function:
Qd = 154,000 - 86(2,000)
Qd = 1,541
Therefore, the quantity demanded would be 1,541. 
There is only one correct answer choice, which is C.

Use the Following Information to Answer the Questions That Follow