1. Suppose that the demand and supply functions for good X are

Q_d= 298 - 8P

Q_s= -32 + 4P

The equilibrium quantity is _____ units.

a. 27.5

b. 32

c. 78

d. 298

2 . Suppose that the demand and supply functions for good X are

Q_d= 298 - 8P

Q_s= -32 + 4P

If price is $35, there is a _____ of _____ units. Therefore, the price will _____.

a. shortage;27.5;rise

b. surplus;27.5;fall

c. shortage;90;rise

d. surplus;90;fall