Scenario 6-2
Suppose demand for a product is given by the equation
Q D = 120 - 4P
and supply for the product is given by the equation
Q S = 4P
-Refer to Scenario 6-2. Suppose the government sets a price ceiling at $17 for this product. Is this price ceiling binding, and what will be the size of the shortage/surplus in this market?

Question

Quizplus · Accepted Answer

The Answer of Scenario 6-2
Suppose demand for a product is given by the equation
Q D = 120 - 4P
and supply for the product is given by the equation
Q S = 4P
-Refer to Scenario 6-2. Suppose the government sets a price ceiling at $17 for this product. Is this price ceiling binding, and what will be the size of the shortage/surplus in this market?

Scenario 6-2 Suppose Demand for a Product Is Given by the Equation