Price Qs Qd Surplus or Shortage


$6.00 30000 0
$5.00 35000
$4.00 40000
$3.00 45000
$2.00 50000
$1.00 55000 -20000 Shortage
Q=65,000 - 10,000 P
Q = -35,000 + 15,000 P

To determine the quantity supplied, we can use the equation Qs = 65,000 - 10,000P, where Qs represents the quantity supplied and P represents the price.

To calculate the quantity supplied at each price, we substitute the given prices into the equation and solve for Qs:

At $6.00: Qs = 65,000 - 10,000 * 6 = 5,000
At $5.00: Qs = 65,000 - 10,000 * 5 = 15,000
At $4.00: Qs = 65,000 - 10,000 * 4 = 25,000
At $3.00: Qs = 65,000 - 10,000 * 3 = 35,000
At $2.00: Qs = 65,000 - 10,000 * 2 = 45,000
At $1.00: Qs = 65,000 - 10,000 * 1 = 55,000

To calculate the quantity demanded, we can use the equation Qd = -35,000 + 15,000P, where Qd represents the quantity demanded and P represents the price.

To calculate the quantity demanded at each price, we substitute the given prices into the equation and solve for Qd:

At $6.00: Qd = -35,000 + 15,000 * 6 = -25,000
At $5.00: Qd = -35,000 + 15,000 * 5 = -20,000
At $4.00: Qd = -35,000 + 15,000 * 4 = -15,000
At $3.00: Qd = -35,000 + 15,000 * 3 = -10,000
At $2.00: Qd = -35,000 + 15,000 * 2 = -5,000
At $1.00: Qd = -35,000 + 15,000 * 1 = 0

To determine if there is a surplus or shortage at each price, we can compare the quantity supplied and quantity demanded:

At $6.00: Surplus of 5,000 - 0 = 5,000
At $5.00: Surplus of 15,000 - (-20,000) = 35,000
At $4.00: Surplus of 25,000 - (-15,000) = 40,000
At $3.00: Surplus of 35,000 - (-10,000) = 45,000
At $2.00: Surplus of 45,000 - (-5,000) = 50,000
At $1.00: Surplus of 55,000 - 0 = 55,000

Therefore, based on the given data, there is a shortage of 20,000 units at a price of $1.00.