Question: 1. Will a price below the equilibrium price result in a market surplus or shortage? 2. Find the market equilibrium point for the following demand

1. Will a price below the equilibrium price result in a market surplus or shortage?

2. Find the market equilibrium point for the following demand and supply functions?

Demand: p = - 2q + 320

Supply: p = 8q + 2

Complete Problem by using the accompanying figure, which shows a supply function and a demand function.

40- 30 20 10- 10 20 30 40 50 60

40- 30 20 10- 10 20 30 40 50 60

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