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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?


Definitions:

Income Distribution

The way in which total income is divided among the population or different groups in an economy.

Labor Market

The supply and demand for labor, where employers seek to hire workers and workers look for employment.

Equilibrium Level

The equilibrium level is the point at which market supply equals market demand, resulting in a stable market condition where there is no inherent tendency for change.

Median Earnings

The middle value of earnings in a given distribution, where half of the population earns less and the other half earns more.

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