For a particular product the Qd = (20 million)- (2.5 million × P)and QS = (0)+ (2.5 million × P). If the current price is $5, which of the following is true?

Name: For a particular product the Qd = (20 million)- (2.5 million × P)and QS = (0)+ (2.5 million × P). If the current price is $5, which of the following is true?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

There is a surplus of the product in the market. At a price of $5, the quantity supplied is 12.5 million units, while the quantity demanded is only 7.5 million units.

For a Particular Product the Qd = (20 Million)- (2