In a competitive market,the market demand is Q^d = 150 − 2P and the market supply is Q^s = 30 + 4P.A price ceiling of $16 will result in a:

Question

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At a price ceiling of $16, we need to find the quantity demanded and quantity supplied. Quantity demanded: Q^d = 150 − 2P = 150 - 2(16) = 118 units Quantity supplied: Q^s = 30 + 4P = 30 + 4(16) = 86 units There is a shortage of 118 - 86 = 32 units. Thus, the closest answer is (A) shortage of 24 units.

In a Competitive Market,the Market Demand Is Qd = 150

In a Competitive Market,the Market Demand Is Q^d = 150