consider a market characteried by the following inverse dema

consider a market characteried by the following inverse demand and supply functions: Px=30-3Qx and Px=10+2Qx. Compute the number of units exchanged and the price at which those unites will be exchanged when there is a $24 per unit price floor

4 Units and $18 per unit

2 Units and $24 per unit

2 Units and $14 per unit

9 Units and $8 per unit

Solution

Demand:

Px=30-3Qx

Supply:

Px=10+2Qx

Equilbrium before price floor:

30-3Qx=10+2Qx

20=5Qx

Qx=4 and Px=18

After price floor of Px=24

Quantity demanded at Px=24 is

Px=30-3Qx

24=30-3Qx

3Qx=6

Qx=2

So 2 units will be exchanged at 24$ per unit.