Multiple Choice
Use the following general linear demand relation: where M is income and is the price of a related good,R.If M = $15,000 and = $20 and the supply function is ,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.
Correct Answer:

Verified
Correct Answer:
Verified
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