If the demand and supply functions for Z-brand phones are and respectively, compare the quantity demanded and the quantity supplied when . Note that q is the quantity produced or sold. Are there surplus phones or not enough to meet demand?
A)There will be a shortage at a price of $22.
B)There will be a surplus at a price of $22.

Question

If the demand and supply functions for Z-brand phones are  and  respectively, compare the quantity demanded and the quantity supplied when  . Note that q is the quantity produced or sold. Are there surplus phones or not enough to meet demand? ​
A)There will be a shortage at a price of $22. 
B)There will be a surplus at a price of $22.

Quizplus · Accepted Answer

At a price of $22, the quantity demanded is 38, while the quantity supplied is only 20. This means there is a shortage of 18 phones (38-20). Therefore, there are not enough phones to meet demand.

If the Demand and Supply Functions for Z-Brand Phones Are