The equation for the quantity demanded, $Q_D$, for a product is
$Q_D = 400 – 20P$
where P = price in ＄. The quantity supplied, $Q_S$, is given by $Q_S = 100 + 40P$.
Which change will occur if the price rises from ＄5 to ＄6?
1 )
The market will move from equilibrium to shortage.
The market will move from equilibrium to surplus.
3 )
The market will move from shortage to surplus.
4 )
The market will move from surplus to shortage.
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