The shortage can be calculated as follows. Set the price ceiling price equal to the demand equation and equal to the supply equation and solve for Q_{d} and Q_{s} respectively.
Demand | 1 = 10 - 0.9Q_{d} |
Q_{d} = 10 | |
Supply | 1 = 0.5 + 0.5Q_{s} |
Q_{s} = 5.25 |
Subtracting Q_{s} from Q_{d}, we have a shortage of 4.75 units.