Question: Suppose a demand function is given as Pd = 86 -1.3Q where Pd is the price in dollars and Q is the quantity available for
Suppose a demand function is given as Pd=861.3Q where Pd is the price in dollars and Q is the quantity available for trade. At the same time, a supply function is given as PS=9 +1.8Q. Assume that the government mandates a price floor (minimum price) of $66.2, what would be the excess quantity supplied? [Use positive values to represent a surplus, negative for a shortage and 0 for a balanced supply and demand. For example -10 would imply a shortage while 5 would imply a surplus.]
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