Market demand is given as Qd =150 - 3P.Market supply is given as Q_S= 2P.What would result if the market price were $25

Question

Quizplus · Accepted Answer

To determine whether there would be a shortage or a surplus at a market price of $25, we need to compare the quantity demanded (Qd) and the quantity supplied (Qs) at that price.
Qd = 150 - 3($25) = 75
Qs = 2($25) = 50
At a price of $25, the quantity demanded (75) exceeds the quantity supplied (50), resulting in a shortage of 25 units. Therefore, the best choice is A.

Market Demand Is Given as Qd =150 - 3P