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Suppose That the Demand and Supply Curves in the Market

Question 9

Multiple Choice

Suppose that the demand and supply curves in the market for apples have the following functional form: QD = 250 - 4p and QS = 10 + p.If the prevailing price on the market is 50,then


A) the market exhibits an excess supply of 240 units.
B) the market exhibits an excess demand of 10 units.
C) the market exhibits an excess supply of 10 units.
D) the market is clearing.
E) the market exhibits an excess demand of 240 units.

Correct Answer:

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