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Use the Following General Linear Demand Relation Qd=6809P+0.006M4PRQ _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }

Question 63

Multiple Choice

Use the following general linear demand relation: Qd=6809P+0.006M4PRQ _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R } where M is income and PRP _ { R } is the price of a related good,R.If M = $15,000 and PRP _ { R } = $20 and the supply function is Q5=30+3pQ _ { 5 } = 30 + 3 p ,then,when the price of the good is $40,


A) there is equilibrium in the market.
B) there is a shortage of 180 units of the good.
C) there is a surplus of 180 units of the good.
D) there is a shortage of 80 units of the good.

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