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. If government regulation sets the market price at $15, what can be inferred about the type of price regulation and the relationship between 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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