# Economics*Micro

posted by .

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 -

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.

## Similar Questions

1. ### ECON

I am working on this but, if I have part a and b wrong, all of the following question related will be wrong. Can you help me out?
2. ### Economics

An early freeze in CA sours the lemon crop, What happens to consumer surplus in the market of lemons?
3. ### Economic

The market for Good X can be depicted with the following demand and supply equations: Demand: P = 50 – 1/2Q Supply: P = 1/3Q Where P is price per unit and Q represents quantity in units. Policy makers plan on imposing a \$1 per unit …
4. ### economics

Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied \$100 70 30 \$200 60 40 \$300 50 50 \$400 40 60 \$500 30 70 \$600 20 80 Plot the supply curve and the demand curve for …
5. ### economics

Suppose the supply and demand for milk is described by the following equations: Qd=600-100P, Qs = -150+150P, where P is price in dollars . Qd is quantity demanded in millions of gallons per year. A. Create supply and demand tables …
6. ### Microeconomics

Answer the following questions based on the graph that represents J.R.'s demand for ribs per week of ribs at Judy's rib shack. a. At the equilibrium price, how many ribs would J.R. be willing to purchase?
7. ### economics

1. Suppose that the market of laptops is given by following supply and demand curves given below: Qd = 5000 − 3p Qs = 1000 + p. Answer the following questions on excel sheet using the above demand and supply equations. i) Take …
8. ### economics

Producer surplus is shown graphically as the area: under the demand curve and above the market price. under the demand curve and below the market price. above the supply curve and below the market price. above the supply curve and …
9. ### Econ 220

Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied \$100 70 30 \$200 60 40 \$300 50 50 \$400 40 60 \$500 30 70 \$600 20 80 a. Plot the supply curve and the demand curve …
10. ### Economic Math

Suppose the supply and demand for milk is described by the following equations: Qd=600-100P, Qs = -150+150P, where P is price in dollars . Qd is quantity demanded in millions of gallons per year. A. Create supply and demand tables …

More Similar Questions