The above figure shows the market for hot curries in a university café.If the university imposes a price ceiling of $4 on hot curries to assist students to afford meals at the university,then

Question

Quizplus · Accepted Answer

When the price ceiling of $4 is imposed, the quantity demanded increases to 200, while the quantity supplied decreases to 50. This creates a shortage of 200 hot curries. The actual market price will be $4, even though the equilibrium price was $6. Therefore, choice D is the correct answer.

The Above Figure Shows the Market for Hot Curries in a University