Demand is Qd = 200 − 5P and supply is Qs = 5P. The government sets a ceiling of ₹15. What is the shortage?

Explanation

1. 01

   Equilibrium: 200 − 5P = 5P, so P = ₹20; the ceiling of ₹15 is below it and binds.

2. 02

   At ₹15: Qd = 200 − 75 = 125; Qs = 75. Shortage = 125 − 75 = 50 units.