Multiple Choice
In the market for used cars, the demand and supply equations are given by QD = 12,000 - 0.4P and QS = 0.1P + 5,000, where P is the price per car and Q measures the quantity of cars. What happens at a price floor of $20,000?
A) There is a surplus of 7,000 cars.
B) There is a surplus of 3,000 cars.
C) Consumers want to buy 3,000 cars.
D) Consumers want to buy 7,000 cars.
Correct Answer:
Verified
Correct Answer:
Verified
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