The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for headphones: Qd = 200-2P and Qs = 3P. Suppose that the government imposes a price ceiling of $30 on headphones. Will there be a surplus or a shortage in the market for headphones? How large will it be? This ceiling is nonbinding. The market is in equilibrium. OIt cannot be determined. o There is a surplus of 50 sets. There is a shortage of 50 sets.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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**Instructions for Questions 1 to 4**

The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for headphones:
- Quantity demanded: \( Qd = 200 - 2P \)
- Quantity supplied: \( Qs = 3P \)

**Scenario: Government Price Ceiling**

Suppose the government imposes a price ceiling of $30 on headphones. Will there be a surplus or a shortage in the market for headphones? How large will it be?

**Options:**
- ⬜ This ceiling is nonbinding. The market is in equilibrium.
- ⬜ It cannot be determined.
-
Transcribed Image Text:**Instructions for Questions 1 to 4** The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for headphones: - Quantity demanded: \( Qd = 200 - 2P \) - Quantity supplied: \( Qs = 3P \) **Scenario: Government Price Ceiling** Suppose the government imposes a price ceiling of $30 on headphones. Will there be a surplus or a shortage in the market for headphones? How large will it be? **Options:** - ⬜ This ceiling is nonbinding. The market is in equilibrium. - ⬜ It cannot be determined. -
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