Figure 4-14
In Figure 4-14, which of the following is true at the price ceiling, P?
A) The excess quantity supplied equals 300 gallons.
B) The excess quantity demanded equals 300 gallons.
C) The excess quantity supplied equals 500 gallons.
D) The excess quantity demanded equals 800 gallons.
E) Sales will be equal to 800 gallons.

Question

Figure 4-14 
In Figure 4-14, which of the following is true at the price ceiling, P?
A) The excess quantity supplied equals 300 gallons. 
B) The excess quantity demanded equals 300 gallons. 
C) The excess quantity supplied equals 500 gallons. 
D) The excess quantity demanded equals 800 gallons. 
E) Sales will be equal to 800 gallons.

Quizplus · Accepted Answer

At the price ceiling, the quantity demanded exceeds the quantity supplied, resulting in excess quantity demanded. In this case, there is a shortage of 300 gallons. Therefore, option B is correct.

Figure 4-14 in Figure 4-14, Which of the Following Is True at Is