Question

In both the United States and Canada, the supply of face masks is given by Q^S= −200+5P. However, the demand in the US is given by Q^D= 300−5P, while the demand in Canada is given by Q^D= 550−10P. What are the equilibrium price and quantities of face masks in the two countries?

A. US: P=45, Q=75; Canada: P=45, Q=100

B. US: P=50, Q=50; Canada: P=45, Q=100

C. US: P=50, Q=50; Canada: P=50, Q=50

D. US: P=45, Q=75; Canada: P=50, Q=50

Answer 1