In a local market, the aggregate demand and aggregate supply of a product is given by the following equation: Qd Qs Qd Qs = 6,360 – 400p =- 1,116+ 300p = Quantity demanded Quantity Supplied = Price of a product P Required: (i) Determine the amount of excess demand or supply if the price is $12. (ii) Determine the amount of excess demand or supply if the price is $8.
In a local market, the aggregate demand and aggregate supply of a product is given by the following equation: Qd Qs Qd Qs = 6,360 – 400p =- 1,116+ 300p = Quantity demanded Quantity Supplied = Price of a product P Required: (i) Determine the amount of excess demand or supply if the price is $12. (ii) Determine the amount of excess demand or supply if the price is $8.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 6E
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![In a local market, the aggregate demand and aggregate supply of a product is
given by the following equation:
Qd
Qs
Qd
Qs
= 6,360 – 400p
= - 1,116 + 300p
= Quantity demanded
= Quantity Supplied
= Price of a product
P
Required:
(i)
Determine the amount of excess demand or supply if the price is $12.
(ii)
Determine the amount of excess demand or supply if the price is $8.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e2371b4-95e4-4c9d-aed3-1178469454a8%2F12a2c7ac-a31b-424d-b6c2-bef815020587%2Fnazc1rb_processed.png&w=3840&q=75)
Transcribed Image Text:In a local market, the aggregate demand and aggregate supply of a product is
given by the following equation:
Qd
Qs
Qd
Qs
= 6,360 – 400p
= - 1,116 + 300p
= Quantity demanded
= Quantity Supplied
= Price of a product
P
Required:
(i)
Determine the amount of excess demand or supply if the price is $12.
(ii)
Determine the amount of excess demand or supply if the price is $8.
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Sketch the market described above and indicate the values of the
equilibrium quantity.
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