-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $13._________ units would be exchanged at the equilibrium price and ____________ units would be exchanged with the price ceiling in effect.
A) 150; 220
B) 150; 150
C) 110; 180
D) 150; 90

Question

-Refer to Exhibit 4-9.Suppose that the government imposes a price ceiling at a price of $13._________ units would be exchanged at the equilibrium price and ____________ units would be exchanged with the price ceiling in effect.
A) 150; 220 
B) 150; 150 
C) 110; 180 
D) 150; 90

Quizplus · Accepted Answer

At the equilibrium price, the quantity supplied equals the quantity demanded, which is 150 units. With a price ceiling at $13, the quantity exchanged remains at 150 units because the price ceiling is above the equilibrium price, thus it does not affect the market outcome.