Question
The reduced demand function for product X is Q d =4000- 800P x and its reduced supply function is Q s =1000+200P x. What amount
The reduced demand function for product X is Qd=4000- 800Px and its reduced supply function isQs =1000+200Px.
What amount of disequilibrium would exist in the market if the government establishes a price ceiling of $1.50?
| a. | a shortage of 1500 | |
| b. | a surplus of 1500 | |
| c. | a shortage of 800 | |
| d. | a surplus of 1000 |
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
