Use the Following General Linear Demand Relation to Answer Questions $$Q _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }$$

question 75

Multiple Choice

Use the following general linear demand relation to answer questions : $$Q _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }$$ where M is income and $P _ { R }$ is the price of a related good, R.
-If M = $15,000 and $P _ { R }$ = $20 and the supply function is $Q _ { s } = 30 + 3 P$ , then, when the price of the good is $40,

• A) there is equilibrium in the market.
• B) there is a shortage of 180 units of the good.
• C) there is a surplus of 180 units of the good.
• D) there is a shortage of 80 units of the good.

---

Definitions:

Proximate Cause

Proximate Cause is a legal concept that connects an individual’s actions to the resulting effect, determining whether the actions are legally deemed to cause a particular outcome.

Legal Cause

A legally recognized reason that directly links an action to a legal consequence, establishing liability.

Product Liability

The legal liability a manufacturer or trader incurs for producing or selling a faulty product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.