Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. What would result if the market price were $10?

Name: Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. What would result if the market price were $10?
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Question

Quizplus · Accepted Answer

At a market price of $10, 
Qd = 95 - 10 = 85 
Qs = 3(10) + 15 = 45 
Therefore, there is a shortage of Qd - Qs = 85 - 45 = 40. So, the answer is D - a shortage of 40.

Market Demand Is Given as Qd = 95 - P