The demand function is $p = 80 - 2x$ and the supply function is $p = 10 + 2x$ . If the price is held at ₹30, how many units is demand short of being met?

7.5 unitsCorrect answerYour answer10 unitsCorrect answerYour answer15 unitsCorrect answerYour answer25 unitsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

At ₹30, buyers want $80 - 2x = 30$ , so 25 units; sellers offer $10 + 2x = 30$ , so 10 units.
The shortfall, the excess demand, is $25 - 10 = 15$ units.

Worth noting

25 units is the demand alone at ₹30.

Ten questions from Consumer & Producer Surplus, at your own pace.

Ten questions from Consumer & Producer Surplus, at your own pace.

The demand function is p=80−2xp = 80 - 2xp=80−2x and the supply function is p=10+2xp = 10 + 2xp=10+2x. If the price is held at ₹30, how many units is demand short of being met?