Given the following supply and demand curves for six-packs of beer, a price of $6.00 would produce:
Demand Q = 31,000 - 2000P
Supply Q = 10,000 + 1500P
A) equilibrium.
B) a shortage of 20,000 six-packs of beer.
C) a surplus of 20,000 six-packs of beer.
D) a shortage of 15,000 six-packs of beer.
E) a surplus of 15,000 six-packs of beer.

Question

Quizplus · Accepted Answer

To find the equilibrium price, we set demand equal to supply:
31,000 - 2000P = 10,000 + 1500P
Solving for P, we get P = $6.00. This is the price at which the quantity demanded equals the quantity supplied, so there is no shortage or surplus. Therefore, the answer is A, equilibrium.

Given the Following Supply and Demand Curves for Six-Packs of Beer