Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PRwhere M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P , then, when the price of the good is $40,
A. there is equilibrium in the market.
B. there is a surplus of 180 units of the good.
C. there is a shortage of 180 units of the good.
D. there is a shortage of 80 units of the good.
Answer: C
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