Suppose the demand and supply curves are described by MC = 1.11 + 0.89Q WTP = 8.92 - 0.83Q Suppose the price is 6.37. A. Given the price above, is there a shortage or a surplus? Surplus Shortage     B. What is the value of the shortage or surplus? Only enter a positive number.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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Suppose the demand and supply curves are described by

MC = 1.11 + 0.89Q
WTP = 8.92 - 0.83Q

Suppose the price is 6.37.

A. Given the price above, is there a shortage or a surplus?

Surplus

Shortage    


B. What is the value of the shortage or surplus? Only enter a positive number.

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