The law of demand indicates that as the price of a good increases, the quantity that
  • buyers are able to purchase decreases.
In a competitive market, the market demand is Qd = 70 – 3P and the market supply is Qs = 6P. A price ceiling of $4 will result in a
  • shortage of 34 units.
If firms expect prices to be higher in the future and the product is not perishable, then
  • he current supply curve shifts to the left.