Use the following to answer question:
-(Table: The Market for Soda)Use Table: The Market for Soda.If the government imposes a price ceiling of $0.50 per can of soda,there will be:
A)a shortage of 2 cans.
B)a shortage of 3 cans.
C)a surplus of 3 cans.
D)equilibrium in the market for soda.

Question

Use the following to answer question: 
-(Table: The Market for Soda)Use Table: The Market for Soda.If the government imposes a price ceiling of $0.50 per can of soda,there will be:
A)a shortage of 2 cans. 
B)a shortage of 3 cans. 
C)a surplus of 3 cans. 
D)equilibrium in the market for soda.

Quizplus · Accepted Answer

On the table, the quantity demanded at the price of $0.50 is 8 cans, while the quantity supplied at the same price is only 5 cans. This creates a shortage of 3 cans (8-5). Therefore, the correct answer is B, a shortage of 3 cans.

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