Homework Help: Economics*Micro

Posted by SadBob on Saturday, February 14, 2009 at 10:25pm.

A market has the following demand and supply equations:
Qd = -50P + 1000
Qs = 150P - 400
Which of the following statements is true?
a. If the price were $9, a surplus of 300 units would exist and price would tend to fall.
b. If the price were $3, a shortage of 800 units would exist and price would tend to rise.
c. The equilibrium price and quantity, respectively are $8 and 600 units.
d. The equilibrium price and quantity, respectively are $6 and 500 units.

Economics*Micro - drwls, Sunday, February 15, 2009 at 1:02am
Plug in $9 and $3 for P and see what you get for Qd and Qs.

For the equilibrium proce, set Qd = Qs and solve for P. See if it agrees with c. or d.

I see two correct choices.

Answer this Question

Related Questions

economics - Suppose the supply and demand for milk is described by the following...
economics - 1. Suppose that the market of laptops is given by following supply ...
economics - Market research has revealed the following information about the ...
economics - assume that the demand and supplu equations for bushels of wheat are...
Managerial Economics - The following relations describe the supply and demand ...
microeconomics - Market demand is given as QD = 200 – 3P. Market supply is ...
economics - Market demand is given as QD = 200 â€“ 3P. Market ...
ECONOMICS - The following relations describe the supply and demand for posters. ...
economics - Suppose that the free market labour supply and labour demand ...
Microeconomics - Using the information below answer the following questions. If ...

For Further Reading

First Name:
School Subject:
Answer: