Figure 4-2
-Given the demand and supply conditions shown in Figure 4-2, if the government imposes a price ceiling of a, indicate the quantity consumers would like to buy and the amount producers would be willing to supply.
A) Consumers would want to buy t; producers would be willing to sell r.
B) Consumers would want to buy r; producers would be willing to sell t.
C) Consumers would want to buy t; producers would be willing to sell s.
D) Consumers would want to buy s; producers would be willing to sell s.

Question

Figure 4-2 
-Given the demand and supply conditions shown in Figure 4-2, if the government imposes a price ceiling of a, indicate the quantity consumers would like to buy and the amount producers would be willing to supply.
A) Consumers would want to buy t; producers would be willing to sell r. 
B) Consumers would want to buy r; producers would be willing to sell t. 
C) Consumers would want to buy t; producers would be willing to sell s. 
D) Consumers would want to buy s; producers would be willing to sell s.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a higher quantity demanded (t) than the quantity supplied (r), leading to a shortage.

Figure 4-2 -Given the Demand and Supply Conditions Shown in Figure 4-2