Perfectly competitive market described by the demand

Reference no: EM13840011

Consider a perfectly competitive market described by the demand function P = 50 - 0.5Q and supply function P = 20 + 0.3Q. Suppose the market is initially in equilibrium. If the government intervenes in the market and imposes of a price restriction of P = $35 per unit, the result will be a:

surplus of 20 units

surplus of 30 units

surplus of 50 units

shortage of 20 units

shortage of 30 units

shortage of 50 units

Reference no: EM13840011

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