Multiple Choice
Suppose the market is initially in equilibrium. If the demand curve shifts leftward by 4 units at every price, what is the most likely effect on the new equilibrium price and quantity?
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3. The Market Forces of Supply and Demand
Market Equilibrium
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Suppose the demand function for a product is Q_d = 100 - 2P. What is the quantity demanded when the market price is 20?
A
40
B
20
C
60
D
80
Verified step by step guidance1
Identify the demand function given: \(Q_d = 100 - 2P\), where \(Q_d\) is the quantity demanded and \(P\) is the price.
Substitute the given market price \(P = 20\) into the demand function to find the quantity demanded at this price.
Write the substitution explicitly: \(Q_d = 100 - 2 \times 20\).
Perform the multiplication inside the equation: \$2 \times 20 = 40$.
Subtract the result from 100 to find the quantity demanded: \(Q_d = 100 - 40\).
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