The demand for a textbook written by Schwarz and Mobley is Q = 20,000 ? 50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, resulting in a price ceiling and, unfortunately, a shortage of texts. Below what price will shortages occur?
A shortage will occur if the price ceiling is below the equilibrium price. Equilibrium price is where quantity demanded equals quantity supplied. At this point,
20,000 ? 50P = 2,000 + 100P
Solving, P = 120 . If price is mandated below $120, there will be a shortage.
Economics
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Refer to the table above. What is the total cost of producing 145 units of the good?
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Economics
If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units from consuming the second, and 15 from the third, the total utility of consuming the three units is
A) 57 utils B) 35 utils. C) 15 utils. D) unknown as more information is needed to determine the answer.
Economics