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?
3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
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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