In a local market, the aggregate demand and aggregate supply of a product is given by the following equation: Qd Qs Qd Qs = 6,360 – 400p =- 1,116+ 300p = Quantity demanded Quantity Supplied = Price of a product P Required: (i) Determine the amount of excess demand or supply if the price is $12. (ii) Determine the amount of excess demand or supply if the price is $8.

In a local market, the aggregate demand and aggregate supply of a product is given by the following equation: Qd Qs Qd Qs = 6,360 – 400p =- 1,116+ 300p = Quantity demanded Quantity Supplied = Price of a product P Required: (i) Determine the amount of excess demand or supply if the price is $12. (ii) Determine the amount of excess demand or supply if the price is $8.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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