(Figure: Price Control)Use Figure: Price Control.One effective price ceiling would be the price indicated at point _____,and there would be a _____ equal to the difference between points _____.
A)b;surplus;f and e
B)b;shortage;f and e
C)d;shortage;i and h
D)d;surplus;e and h

Question

(Figure: Price Control)Use Figure: Price Control.One effective price ceiling would be the price indicated at point _____,and there would be a _____ equal to the difference between points _____. 
A)b;surplus;f and e 
B)b;shortage;f and e 
C)d;shortage;i and h 
D)d;surplus;e and h

Quizplus · Accepted Answer

A price ceiling is effective when it is set below the equilibrium price, which in this case is point d. Setting the price at point b would create a shortage as the quantity demanded (i and h) exceeds the quantity supplied (e and f). Therefore, the correct answer is C, where the effective price ceiling is set at point d, creating a shortage equal to the difference between points i and h.