In a competitive market,the market demand is Q^d = 60 − 6P and the market supply is Q^s = 4P.A price ceiling of $3 will result in a:

Question

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To determine the effect of a price ceiling of $3, we first calculate the quantity demanded and supplied at this price. For the demand, QD = 60 - 6(3) = 60 - 18 = 42 units. For the supply, QS = 4(3) = 12 units. The difference between quantity demanded and quantity supplied at this price is 42 - 12 = 30 units, indicating a shortage of 30 units.

In a Competitive Market,the Market Demand Is Qd = 60

In a Competitive Market,the Market Demand Is Q^d = 60