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Phantasy [73]
3 years ago
8

In the market for used cars, the demand and supply equations are given by qd = 12,000 – 0.4p and qs = 0.1p + 5,000, where p is t

he price per car and q measures the quantity of cars. what happens at a price floor of $20,000?
Business
1 answer:
Anon25 [30]3 years ago
8 0

In this case you simply plug in 20,000 for p in both of the equations and then compare the values. If qd>qs then there is a inventory shortage. If qd<qs then you have a surplus.

qd= 4,000

qs = 7,000

More suppliers are willing to sell than consumers are willing to buy.

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