FIGURE 5- 2
-Refer to Figure 5- 2. A price ceiling set at a price of $1.00 per unit will result in
A) a surplus of 10 units
B) a surplus of 20 units.
C) a shortage of 10 units.
D) a shortage of 20 units.
E) no change to the market outcomes.

Question

FIGURE 5- 2
-Refer to Figure 5- 2. A price ceiling set at a price of $1.00 per unit will result in
A) a surplus of 10 units 
B) a surplus of 20 units. 
C) a shortage of 10 units. 
D) a shortage of 20 units. 
E) no change to the market outcomes.

Quizplus · Accepted Answer

At a price ceiling of $1.00 per unit, the quantity demanded is 30 units, while the quantity supplied is only 10 units. This creates a shortage of 20 units, as there are not enough units supplied to meet the demand at that price.

FIGURE 5- 2 -Refer to Figure 5- 2. a Price Ceiling Set at Ceiling