The impact on the market rounded to the nearest whole

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Consider a perfectly competitive market described by the supply function P = 10 + 0.3Q and demand function P = 60 - 0.2Q. Suppose the market is initially in equilibrium. If the government intervenes in the market and imposes a price restriction of P = $25 per unit, the impact on the market rounded to the nearest whole unit will be a:

surplus of 50 units

surplus of 125 units

shortage of 125 units

shortage of 175 units

Reference no: EM131387095

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