Suppose That the Demand and Supply Curves for a Good

Multiple Choice

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is happening in the market at a price of $2?

A) There is an excess demand of 480 units.
B) There is an excess demand of 150 units.
C) There is an excess supply of 480 units.
D) There is an excess supply of 150 units.