Figure 6-31
-Refer to Figure 6-31. Suppose that a price ceiling is imposed in this market at a price of $30 and market demand for the good subsequently increases. This would

Question

Figure 6-31  ​
-Refer to Figure 6-31. Suppose that a price ceiling is imposed in this market at a price of $30 and market demand for the good subsequently increases. This would

Quizplus · Accepted Answer

If market demand for the good increases after a price ceiling has been imposed and held below the equilibrium price, the quantity supplied will remain the same or decrease while the quantity demanded will increase. As a result, the shortage will increase in size. So, the correct option is D.

Figure 6-31 ​

Figure 6-31