Find amount of shortage or surplus that would develop


The market for gravel has been estimated to have these supply and demand relationships:

Supply P = 10 + 0.01Q

Demand P = 100 - 0.01Q,

where P represents price per unit in dollars, and Q represents sales per week in tons.

A) Determine the equilibrium price and sales.

B) Determine the amount of shortage or surplus that would develop at P = $40/ton

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Microeconomics: Find amount of shortage or surplus that would develop
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