Market demand is given as Qd = 100 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $20?
A)a shortage of 30
B)a surplus of 60
C)a surplus of 30
D)a shortage of 60

Question

Quizplus · Accepted Answer

At a price of $20, the quantity demanded (Qd) is 100 - 2(20) = 60, and the quantity supplied (Qs) is 20 + 10 = 30. Therefore, there is a shortage of 30 units (60 - 30 = 30).

Market Demand Is Given as Qd = 100 - 2P