Use the Following General Linear Supply Function $Q _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F$

Multiple Choice

Use the following general linear supply function: $Q _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F$ where $Q _ { 5 }$ is the quantity supplied of the good,P is the price of the good, $P _ { I }$ is the price of an input,and F is the number of firms producing the good.Suppose $P _ { I }$ = $40,F = 50,and the demand function is $Q _ { d } = 700 - 6 P$ ,then if government sets a price of $30 what will be the result?

A) a shortage of 120
B) a surplus of 120
C) a shortage of 160
D) a surplus of 160