Scenario 6-1
Suppose That Demand in the Market for Good $$Q ^ { D } = 30 - P$$

question 176

Essay

Scenario 6-1
Suppose that demand in the market for good X is given by the equation
$$Q ^ { D } = 30 - P$$ and that supply in the market for good X is given by the equation
$$Q ^ { S } = 2 P$$
-Refer to Scenario 6-1. If the government set a price floor at $7, would there be a shortage or surplus, and how large would be the shortage/surplus?

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Definitions:

Uncertainty

The state of being uncertain, lacking definite knowledge or full assurance about future outcomes or situations.

Ambiguity

The quality of being open to more than one interpretation; lack of clarity or certainty in meaning.

Output

The amount of something produced by a person, machine, or industry.

Data

Information collected for reference, analysis, or computation, often structured in a way that makes it accessible and useful.