Market demand is given as Q_D= 80 - P.Market supply is given as Q_S= 3P.What would result if the market price were $10

Name: Market demand is given as Q D = 80 - P.Market supply is given as Q S = 3P.What would result if the market price were $10
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

At a market price of $10, the quantity demanded would be:

QD = 80 - P = 80 - 10 = 70

The quantity supplied would be:

QS = 3P = 3(10) = 30

Since QS < QD, there would be a shortage of:

QD - QS = 70 - 30 = 40.

Therefore, the correct answer is D: a shortage of 40.

Market Demand Is Given as QD = 80 - P

Market Demand Is Given as Q_D= 80 - P