Suppose the market supply and market demand for a product are given by p = 2 + qs and p = 14 − qd , respectively (where p is price (in dollars), qs is quantity supplied and qd is quantity demanded). what will be the effect on the market if the government sets a price ceiling of $7?

The effect will be a shortage of 2 products.

Step-by-step explanation:

You know that the demand is given by the following equation: P = 14 - Qd and the supply is given by P = 2 + Qs. From these equations you can determine the quantity demanded and offered of a product at a certain price, simply replacing its numerical value in the equation and calculating Qd and Qs.

If the government sets a maximum price of $ 7, you can determine the quantity demanded and offered,simply replacing in the equations and isolating the value of Qs and Qd :

Market supply: P=2+Qs ⇒ 7=2+Qs ⇒ Qs=5

So, the quantity offered by the market is 5 products at the price of $ 7.

Market demand: P=14 - Qd ⇒ 7=14 - Qd ⇒ Qd= 7

So, the quantity demanded by the market is 7 products at the price of $ 7.

You can see that the market demands more than it can offer. This means that there are shortages, in this case of 2 products, obtained by subtracting the quantity of product demanded and the quantity offered.

a

step-by-step explanation:

rurbrbrjrnrbjr

a. (14,375+570)(5.3) b. 158,417$

step-by-step explanation:

a. you are basically just setting up the equation. f= amount of debt hence 14,375. g= how much she is borrowing from her parents weekly hence 570 and t= the interest on her debt. creating the equation.

b.   14,375+570= 14,945

      14,945 x 5.3 = 79,208.5

      79,208.5 x 2(years) = 158,417(answer)