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 Qd and Qs respectively.
Demand | 1 = 10 - 0.9Qd |
Qd = 10 | |
Supply | 1 = 0.5 + 0.5Qs |
Qs = 5.25 |
Subtracting Qs from Qd, we have a shortage of 4.75 units.