Suppose that the demand curve for a good is given by Q_D = 60 - 0.5P_D,while the supply curve for the good is given by Q_S = 20 + 0.5P_S.If the price in this market is currently equal to 30,then there is currently ______ in the amount of _____ units. A) excess demand;10 B) excess demand;20 C) excess supply;10 D) excess supply;20 E) excess supply;40

Question

Quizplus · Accepted Answer

At a price of 30, Q_D = 60 - 0.5(30) = 45 and Q_S = 20 + 0.5(30) = 35. Thus, there is excess demand of 45 - 35 = 10 units.

Suppose That the Demand Curve for a Good Is Given