The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If market price is $8 what is the difference between demand and supply? Enter a number only, drop the $ sign. If there is excess demand then input a positive number. If there is excess supply, input a negative number. If the market is in equilibrium, enter 0.
The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If market price is $8 what is the difference between demand and supply? Enter a number only, drop the $ sign. If there is excess demand then input a positive number. If there is excess supply, input a negative number. If the market is in equilibrium, enter 0.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle
bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If
market price is $8 what is the difference between demand and supply? Enter a number only, drop the
$ sign. If there is excess demand then input a positive number. If there is excess supply, input a
negative number. If the market is in equilibrium, enter 0.
You Answered
-80.5
Correct Answer
154.5 margin of error +/- 0.1
Invert the supply function to get Q(P). Plug price into the demand curve to get demand. Plug
price into the inverted supply function to get supply. Take the difference.
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