Suppose the demand for good x was given by: qd= 680 - 2p and the supply for good x was given by: qs= 2p - 360. the current price in the market is $258. find the quantity of units in the shortage or sur+ that results from this price. be sure to use a negative sign if it is a shortage since some units are missing from the marketplace. (round to the nearest two decimal places if necessary.)

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.