Use the Following Demand and Supply Functions: Demand $Q _ { d } = 900 - 60 p$

question 72

Multiple Choice

Use the following demand and supply functions: Demand: $Q _ { d } = 900 - 60 p$ Supply: $Q _ { s } = - 200 + 50 \mathrm { P }$ If the price is currently $11,there is a

• A)surplus of 110 units.
• B)shortage of 240 units.
• C)surplus of 350 units.
• D)shortage of 700 units.

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Definitions:

Utility Function

An economic concept representing a user's satisfaction levels with varying consumption of goods or services, ranked from less to more preferred.

Interest Rate

The slice of a loan that generates interest charges for the borrower, often cited as an annual percentage of the yet-to-be-paid loan amount.

Inflation

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

Utility Function

A mathematical representation of how different bundles of goods or services rank according to their utility (satisfaction) for an individual or entity.