Refer to the figure below. If a price ceiling were imposed at point G, then excess demand would be measured by the distance between points:
A)G and I
B)F and I
C)K and I
D)F and K

Question

Refer to the figure below.  If a price ceiling were imposed at point G, then excess demand would be measured by the distance between points:
A)G and I 
B)F and I 
C)K and I 
D)F and K

Quizplus · Accepted Answer

With a price ceiling at point G, point I indicates the quantity demanded (Q3)and point F indicates the quantity supplied (Q2). So excess demand is given by the distance between points F and I (Q3 − Q2).

Refer to the Figure Below