Market demand is given as Qd =300 - 2P.Market supply is given as Qs = 2P + 100.What would result if the market price were $30?

Question

Quizplus · Accepted Answer

At a price of $30, the quantity demanded is:
Qd = 300 - 2P = 300 - 2(30) = 240
The quantity supplied is:
Qs = 2P + 100 = 2(30) + 100 = 160
Since the quantity demanded (240) is greater than the quantity supplied (160), there is a shortage of:
240 - 160 = 80 units. Therefore, the correct answer is D.

Market Demand Is Given as Qd =300 - 2P