-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $15.The number of units that would be exchanged in this market would be
A) 150,since that is the equilibrium quantity and the price ceiling is above the equilibrium price.
B) 80,since that is the number of units demanded at the price ceiling.
C) 260,since that is the number of units supplied at the price ceiling.
D) 170,since that is the average of the quantity demanded and the quantity supplied at the price ceiling.

Question

-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $15.The number of units that would be exchanged in this market would be
A) 150,since that is the equilibrium quantity and the price ceiling is above the equilibrium price. 
B) 80,since that is the number of units demanded at the price ceiling. 
C) 260,since that is the number of units supplied at the price ceiling. 
D) 170,since that is the average of the quantity demanded and the quantity supplied at the price ceiling.

Quizplus · Accepted Answer

The price ceiling of $15 is above the equilibrium price, so it does not affect the market. Therefore, the equilibrium quantity of 150 units will be exchanged.