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Equating demand and supply functions to find surplus and shortage.

1. In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in

a) A shortage of 18 units.

b) A surplus of 12 units.

c) A surplus of 30 units.

d) A shortage of 30 units.

e) neither a shortage nor a surplus.

2. In a competitive market, the market demand is Qd = 70 - 3P and the market supply is Qs = 6P. A price ceiling of $4 will result in

a) A surplus of 58 units.

b) A shortage of 34 units.

c) A shortage of 24 units.

d) A surplus of 34 units.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917849

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