Suppose the demand and supply for milk is described by the following equations: Qp= 7000-100P; Qs=-3000+400P, where P is price in dollars, QD is quantity demanded in millions of gallons per year, and Qs is quantity supplied in millions of gallons per year. Calculate equilibrium quantities and price. 2. If the price in the above market is $15 would the market be in equilibrium, surplus or shortage? If it is in surplus or shortage, how much would the shortage or surplus be?

Suppose the demand and supply for milk is described by the following equations: Qp= 7000-100P; Qs=-3000+400P, where P is price in dollars, QD is quantity demanded in millions of gallons per year, and Qs is quantity supplied in millions of gallons per year. Calculate equilibrium quantities and price. 2. If the price in the above market is $15 would the market be in equilibrium, surplus or shortage? If it is in surplus or shortage, how much would the shortage or surplus be?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 1WNG

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