A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2025 · Q101 Mark
The quantity demanded of a product is given by QD = 400 – 10P, when P is the price in dollars. Supply of the product is fixed at 100 units. If the price is $20, what will be the position in the market?
AIt will be in disequilibrium with excess demand of 100 units.
BIt will be in disequilibrium with excess supply of 100 units.
CIt will be in equilibrium with 100 units traded.
DIt will be in equilibrium with 200 units traded.
✓ Correct answer
A: It will be in disequilibrium with excess demand of 100 units.
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