Given the following supply and demand curves for six-packs of beer, a price of $8.00 would produce:
Demand Q = 31,000 - 2000P
Supply Q = 10,000 + 1500P
A) equilibrium.
B) a shortage of 7,000 six-packs of beer.
C) a surplus of 7,000 six-packs of beer.
D) a shortage of 15,000 six-packs of beer.
E) a surplus of 22,000 six-packs of beer.

Question

Quizplus · Accepted Answer

At a price of $8.00, the demand quantity is 31,000 - 2000(8) = 15,000, and the supply quantity is 10,000 + 1500(8) = 22,000. The difference between supply and demand at this price is 22,000 - 15,000 = 7,000, indicating a surplus of 7,000 six-packs of beer.

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