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

Demand and supply curves — practice question

For a product, the quantity demanded (QD) is represented by QD = 400 – 20P, with P as the price in dollars. The quantity supplied (QS) is represented by QS = 100 + 40P. What alteration will take place if the price increases from $5 to $6?

  • Athe market will move from equilibrium to shortage
  • Bthe market will move from equilibrium to surplus
  • Cthe market will move from shortage to surplus
  • Dthe market will move from surplus to shortage

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