Suppose demand is given by $Q ^ { d } = 500 - 15 P$ and supply is given by $Q ^ { s } = 5 P$. If the government imposes a $\$ 15$ price ceiling, the excess demand will be
A) 200
B) 225
C) 250
D) 275

Question

Quizplus · Accepted Answer

At a price ceiling of $15, quantity demanded is 325 units (Qd = 500 - 15 * 15 = 325) and quantity supplied is 75 units (Qs = 5 * 15 = 75). Excess demand is 250 units (325 - 75 = 250).

Suppose Demand Is Given By Qd=500−15PQ ^ { d } = 500 - 15 PQd=500−15P

Suppose Demand Is Given By $Q ^ { d } = 500 - 15 P$