Use the following to answer question:
-(Table: Market for Fried Twinkies)Use Table: Market for Fried Twinkies.In response to popular anger over the high price of fried Twinkies and the extreme wealth of fried Twinkie producers,the government imposes a price ceiling of $1.20 per fried Twinkie.From this table,the price ceiling causes a _____ fried Twinkies.
A)shortage of 3,000
B)shortage of 5,000
C)surplus of 8,000
D)surplus of 3,000

Question

Use the following to answer question: 
-(Table: Market for Fried Twinkies)Use Table: Market for Fried Twinkies.In response to popular anger over the high price of fried Twinkies and the extreme wealth of fried Twinkie producers,the government imposes a price ceiling of $1.20 per fried Twinkie.From this table,the price ceiling causes a _____ fried Twinkies.
A)shortage of 3,000 
B)shortage of 5,000 
C)surplus of 8,000 
D)surplus of 3,000

Quizplus · Accepted Answer

At a price of $1.20, the quantity demanded is 8,000, while the quantity supplied is only 5,000. This creates a shortage of 3,000 fried Twinkies.

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