Use the following to answer question: -(Figure: Supply and Demand)Use Figure: Supply and Demand.A price ceiling of P₃ causes: A)a shortage equal to the distance AB. B)a surplus equal to the distance AB. C)a shortage equal to the distance DE. D)no change to the market.

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A price ceiling is a legal maximum price set below the equilibrium price. In this case, the price ceiling of PS1U1B13S1U1B0 is below the equilibrium price of PS1U1B23S1U1B0. As a result, the quantity demanded exceeds the quantity supplied, leading to a shortage. The shortage is equal to the distance between the quantity demanded (DE) and the quantity supplied (EF), which is represented by the vertical distance between points D and E on the graph. Therefore, the correct answer is C.

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