Question about Price of elasticity of demand
Suppose the demand for guitars in state college is given by Qd=8,000-10p where Qd is the quantity dmeanded, and P is the price of quitars. Also, suppose the supply of guitars is given by Qs=30P-2000, where Qs is the quantity supplied of guitars. Calculate the equilibrium price of guitars and the equilibrium quantity of guitars in State College. Also, suppose the actual price of guitars is $500. Determine if there is a shortage, a surplus, or if the market is in equilibrium at a price of $500. Calculate how much the shortage or surplus is if there is any.