Exhibit 4-7 Exhibit 4-7 Depicts the Milk Market

Exhibit 4-7 Exhibit 4-7 depicts the milk market.The horizontal line, P, represents a price ceiling imposed by the government.Which of the following is true?

A) In equilibrium, the quantity demanded is 800 gallons.
B) At the ceiling price, there is a surplus.
C) The quantity demanded at the price ceiling will equal the quantity supplied.
D) The equilibrium price would be $1 per unit without the price ceiling.
E) The quantity supplied at the price ceiling will equal the quantity sold.