Question
Suppose the demand for a product can be represented by QD = 100 - 5P, while supply is given by Qs = -20 + 3P,
Suppose the demand for a product can be represented by QD = 100 - 5P, while supply is given by Qs = -20 + 3P, where P is the price in rand.
1.3. The equilibrium price for the product is the following:
A. R6.67
B. R5
C. R20
D. R15
E. Cannot be calculated.
1.4. At the equilibrium price and quantity, total consumption expenditure is the following:
A. R375
B. R15
C. R25
D. R50
E. R250
1.5. If the price is set at R10, the market will experience _____
A. a surplus (excess supply of R50).
B. a surplus (excess supply of R40).
C. a shortage (excess demand of R50).
D. a shortage (excess demand of R40).
E. a shortage (excess demand of R10).
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