Market demand is given as Q_D= 95 - P.Market supply is given as Q_S= 3P + 15.What would result if the market price were $10

Question

Quizplus · Accepted Answer

To find out if there will be a shortage or surplus, we need to find the quantity demanded (Qd) and the quantity supplied (Qs) at the given price of $10. Qd = Q_D = 95 - 10 = 85 Qs = Q_S = (3 x 10) + 15 = 45 Since Qd > Qs, there will be a shortage of: Qd - Qs = 85 - 45 = 40 Therefore, the best choice is D, a shortage of 40.

Market Demand Is Given as QD = 95 - P

Market Demand Is Given as Q_D= 95 - P