Suppose the market for potatoes can be expressed as follows:
Supply: QS = -20 + 10p
Demand: QD = 400 - 20p
If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied?
With a maximum price of $10, suppliers will sell only 80 units. (Q = -20 + 10(10 ) = 80 ). But at a price of $10, buyers wish to purchase 200 units: Q = 400 - 20(10 ) = 200. Thus, there will be excess demand of 120 units.
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A major purchaser of corporate bonds is
A) state and local governments. B) money market mutual funds. C) pension and retirement funds. D) the Federal Reserve.
In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. The beneficiaries of this deal is/are ________.
A. the students at State U B. State U and CheapFizz C. CheapFizz D. State U