Figure 6-2
This figure shows the market demand and market supply curves for good X.
-Refer to Figure 6-2.If the government imposes a price ceiling of $4 on this market,then there will be

Question

Figure 6-2
This figure shows the market demand and market supply curves for good X. 
-Refer to Figure 6-2.If the government imposes a price ceiling of $4 on this market,then there will be

Quizplus · Accepted Answer

At a price ceiling of $4, the quantity demanded exceeds the quantity supplied, resulting in a shortage of 10 units. This can be seen by looking at the point where the price ceiling intersects the demand curve, and then looking at the quantity supplied at that price on the supply curve. The quantity demanded at the price ceiling is greater than the quantity supplied, hence there will be a shortage of 10 units.

Figure 6-2 This Figure Shows the Market Demand and Market Supply Curves