Market demand is given as Qd = 300 - 2P.Market supply is given as Qs = 2P + 100.What would result if the market price were $15?

Question

Quizplus · Accepted Answer

If the market price were $15, then from market demand, 
Qd = 300 - 2P = 300 - 2(15) = 270, 
and from market supply, 
Qs = 2P + 100 = 2(15) + 100 = 130. 
Thus, the quantity demanded (270) is greater than the quantity supplied (130), resulting in a shortage of 140. Therefore, option D, a shortage of 140, is the correct answer.

Market Demand Is Given as Qd = 300 - 2P