Let demand for a product be given by the function qd=80-3p and supply be given by qs=2p-30. Suppose the price in this market is $16. What are the quantity demanded and the quantity supplied at this price? Is there a shortage or a surplus?

The quantity demanded is 32 and the quantity supplied is 2.

There is a shortage of product by 30 quantity.

Step-by-step explanation:

Let demand for a product be given by the function qd = 80 - 3p and supply be given by qs = 2p - 30 where p is the market price of the product.

If p = $16 for any product then, qd = 80 - 3 * 16 = 32 and qs = 2 * 16 - 30 = 2.

Therefore, the quantity demanded is 32 and the quantity supplied is 2.

So, there is a shortage of product by (32 - 2) = 30 quantity. (Answer)