Calculate the shortage of surrogate mothers

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Reference no: EM131101417

Consider a market for surrogate mothers in the City of Shangeles. 100 people are willing to surrogate for free in a given time period, but others require payment. Supply is given by P_s = 0 for Q lessthanorequalto 100 and P_s = -100 + Q when Q > 100. Demand is given by P = 1000-Q. Calculate the shortage of surrogate mothers when the sale of surrogacy services is banned, i.e. there is a price ceiling P_c = 0.

Reference no: EM131101417

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