Use algebra then take a shot.
Hint: a surplus occurs when Qs>Qd, a shortage occurs when Qs<Qd, and equilibrium is when Qs=Qd. Plug the various prices into P and solve.
The following relations describe the supply and demand for posters.
Qd = 65,000 – 10,000 P
Qs = -35,000 + 15,000P
Where Q is the quantity and P is the price of a poster, in dollars.
a. Complete the following table.
Price Qs Qd Surplus or Shortage
$6.00
5.00
4.00
3.00
2.00
1.00
b. What is the equilibrium price?
2 answers
3.oo
1 answer