The quantity demanded of a product is given by ${Q_D} = {\text{ }}400-10P$, when P is the price in dollars. Supply of the product is fixed at 100 units.
If the price is $20, what will be the position in the market?
It will be in disequilibrium with excess demand of 100 units.
2 )
It will be in disequilibrium with excess supply of 100 units.
3 )
It will be in equilibrium with 100 units traded.
4 )
It will be in equilibrium with 200 units traded.
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