Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3
-Refer to Figure 4.3. In the market for pencils, the quantity demanded will be greater than the quantity supplied if the government imposes an effective
A) price floor.
B) price ceiling.
C) market equilibrium price.
D) price surplus.

Question

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.  Figure 4.3
-Refer to Figure 4.3. In the market for pencils, the quantity demanded will be greater than the quantity supplied if the government imposes an effective
A) price floor. 
B) price ceiling. 
C) market equilibrium price. 
D) price surplus.

Quizplus · Accepted Answer

A price ceiling set below the market equilibrium price will result in a quantity demanded that exceeds the quantity supplied, leading to a shortage.

Refer to the Information Provided in Figure 4