Consider a market where demand is described by the equation Q = 100 -8P, and supply is described by the equation Q = 20 + 4P. At a price of $5, which of the following statements is true? There is a surplus of 20 units. Quantity supplied equals quantity demanded. There is a shortage of 20 units. The market is in equilibrium.
Consider a market where demand is described by the equation Q = 100 -8P, and supply is described by the equation Q = 20 + 4P. At a price of $5, which of the following statements is true? There is a surplus of 20 units. Quantity supplied equals quantity demanded. There is a shortage of 20 units. The market is in equilibrium.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 1WNG
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Transcribed Image Text:Consider a market where demand is described by the equation Q = 100 -8P, and supply is described by the
equation Q = 20 + 4P. At a price of $5, which of the following statements is true?
There is a surplus of 20 units.
Quantity supplied equals quantity demanded.
There is a shortage of 20 units.
The market is in equilibrium.
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