-The demand and supply schedules for pizza are in the table above. A price ceiling of $2 per slice results in
A) a shortage of 60 slices of pizza.
B) a surplus of 20 slices of pizza.
C) a shortage of 20 slices of pizza.
D) a shortage of 40 slices of pizza.
E) neither a shortage nor a surplus.

Question

-The demand and supply schedules for pizza are in the table above. A price ceiling of $2 per slice results in
A) a shortage of 60 slices of pizza. 
B) a surplus of 20 slices of pizza. 
C) a shortage of 20 slices of pizza. 
D) a shortage of 40 slices of pizza. 
E) neither a shortage nor a surplus.

Quizplus · Accepted Answer

At a price ceiling of $2, the quantity demanded exceeds the quantity supplied, leading to a shortage. The specific quantities for demand and supply at this price point are not provided, but the correct answer is identified based on the principle that a price ceiling below the equilibrium price causes a shortage.

-The Demand and Supply Schedules for Pizza Are in the Table