Suppose market demand and supply are
given by Qd= 400-12P and Qs= -20 + 8P. If...
70.2K
Verified Solution
Link Copied!
Question
Economics
Suppose market demand and supply aregiven by Qd= 400-12P and Qs= -20 + 8P. If aprice floor of $20.00 is imposed,
there will be a surplus of 10 units.
there will be neither a surplus or shortage.
there will be a shortage of 16 units. Â
None of the above choices makes any sense in this case.
Answer & Explanation
Solved by verified expert
3.9 Ratings (783 Votes)
The price floor is fixed at price of 20 Calculate the market demand at the price floor Qd 400 12P Qd 400 12 20 Qd 400 240 Qd 160 The market demand at the price floor is 160 units Calculate the market
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
