Figure 4-17 Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,
A) there is a shortage of 15 units of the good.
B) the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50).
C) the situation is very much like the one created by a binding minimum wage.
D) the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.

Question

Figure 4-17  Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,
A) there is a shortage of 15 units of the good. 
B) the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50). 
C) the situation is very much like the one created by a binding minimum wage. 
D) the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.

Quizplus · Accepted Answer

The Answer of Figure 4-17  Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,
A) there is a shortage of 15 units of the good. 
B) the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50). 
C) the situation is very much like the one created by a binding minimum wage. 
D) the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.