Consider a market in which the market demand is given by the equation QD = 44 – 3P and market supply is given by the equation QS = 2P + 4. If the price in the market is $2, there is a ________ of ________ in the market.

Question

BlackTom AI · Accepted Answer

1. Relevant knowledge points and concepts
- Demand and supply functions give quantity demanded (QD) and quantity supplied (QS) at any price P. 
- A surplus (excess supply) occurs when QS > QD at a given price; a shortage (excess demand) occurs when QD > QS.
- To determine excess supply or demand at a particular price, evaluate QD and QS at that price and compare.

2. Complete reasoning process step by step
- Start with the given equations: QD = 44 − 3P and QS = 2P + 4.
- Substitute the given market price P = 2 into each equation to find the quantities at that price.

3. Calculations with intermediate steps
- Compute quantity demanded:
  QD = 44 − 3P = 44 − 3(2) = 44 − 6 = 38.
- Compute quantity supplied:
  QS = 2P + 4 = 2(2) + 4 = 4 + 4 = 8.
- Compare QD and QS:
  QD − QS = 38 − 8 = 30.

4. Why the correct answer is correct
- Because quantity demanded (38) exceeds quantity supplied (8) at price $2, there is excess demand — i.e., a shortage.
- The magnitude of the shortage equals the difference between demanded and supplied quantities: 38 − 8 = 30 units.

5. Why the other options are incorrect
- Options a (surplus, 20) and b (surplus, 30) assert a surplus; these are wrong because QS (8) < QD (38), so supply is not greater than demand.
- Option c (shortage, 20) has the correct direction (shortage) but the wrong magnitude; the actual difference is 30, not 20.

6. Conclusion confirming the final answer
- Therefore the market has a shortage of 30 units at price $2. The correct choice is d. shortage, 30.

Consider a market in which the market demand is given by the equation QD = 44 – 3P and market supply is given by the equation QS = 2P + 4. If the price in the market is $2, there is a of in the market.Single choice

Similar Questions

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

Assume that soft drinks and fried chicken are complementary goods for consumers. The effect of an increase in the price of soft drinks on the market for fried chicken would be to:

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

When graphing a basic demand and supply model, we usually assume that as quantity increases,

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

Consider a market in which the market demand is given by the equation QD = 44 – 3P and market supply is given by the equation QS = 2P + 4. If the price in the market is $2, there is a ________ of ________ in the market.Single choice

Similar Questions

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

Assume that soft drinks and fried chicken are complementary goods for consumers. The effect of an increase in the price of soft drinks on the market for fried chicken would be to:

Imagine the government introduces a new subsidy for measles vaccinations. The government will pay consumers of the vaccination 50% of the vaccination price. Which effect is most likely in the market for vaccinations?

When graphing a basic demand and supply model, we usually assume that as quantity increases,

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

Consider a market in which the market demand is given by the equation QD = 44 – 3P and market supply is given by the equation QS = 2P + 4. If the price in the market is $2, there is a of in the market.Single choice