Question

In both the United States and Canada, the supply of face masks is given by QS=−200+5P. However, the demand in the US is given by QD=300−5P, while the demand in Canada is given by QD=550−10P. The coronavirus breaks out and the demand for face masks in both countries increases by 150 units at each price. What are the new equilibrium prices and quantities of face masks in the two countries?

Question 4 options:

a) US: P=50, Q=200; Canada: P=50, Q=200

b) US: P=50, Q=50; Canada: P=60, Q=100

c) US: P=50, Q=50; Canada: P=50, Q=50

d) US: P=65, Q=125; Canada: P=60, Q=100

Answer 1