Suppose That the Demand and Supply Curves for Green Peas

Multiple Choice

Suppose that the demand and supply curves for green peas are given by Q^D = 10 - 8P and Q^S = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____.

A) has excess demand of 3,000 pounds; rise
B) has excess supply of 1,000 pounds; fall
C) is in equilibrium; remain unchanged
D) has excess demand of 5,000 pounds; rise