Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

For a product, the demand and supply functions are quantity demanded = 1500 + 50P and quantity supplied = 300P – 2000, where P = price. Because of government regulation, the market price now stands at $15. What may be inferred about the type of price regulation and the state of demand and supply in this market?

  • Aeffective maximum price; excess demand
  • Beffective maximum price; excess supply
  • Ceffective minimum price; excess demand
  • Deffective minimum price; excess supply

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