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

A price ceiling set below the equilibrium price results in excess demand, as the quantity demanded exceeds the quantity supplied. The excess quantity demanded is 300 gallons.

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