-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $11.How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?
A) 50
B) 30
C) 40
D) 70

Question

-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $11.How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?
A) 50 
B) 30 
C) 40 
D) 70

Quizplus · Accepted Answer

At the price ceiling of $11, only 70 units would be exchanged, while at the equilibrium price of $15, 120 units would be exchanged. Therefore, 120 - 70 = 50 fewer units would be exchanged at the price ceiling.