You Are Given the Following Equations Where P Is Price

question 139

Essay

You are given the following equations where P is price and Q is quantity:
Equation 1: P = 300 - 10Q Equation 2: P = 5Q
a.Which equation represents the demand curve? Why?
b.What is the equilibrium price and equilibrium quantity?
c.At a price of $150, is there a shortage, surplus, or neither? If there is a shortage or surplus, what is the amount of that shortage or surplus?

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Definitions:

Repainting

Repainting involves updating or applying a fresh coat of paint to an object or area to enhance its appearance or protect it from damage.

Straight-Line Depreciation

A method of calculating the depreciation of an asset where the expense is evenly allocated over its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Cash Transaction

A financial exchange involving the immediate payment of cash for the purchase of goods or services.