-Refer to Exhibit 4-11.Suppose that the government imposes a price ceiling in the market for good ABC at a price of $4.The number of units that would be exchanged in the market for good ABC at the price ceiling would be _________ units.

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a shortage, where the quantity demanded exceeds the quantity supplied. Assuming the equilibrium quantity is higher than 40, the number of units exchanged would be limited to the quantity supplied at the price ceiling, which is 40 units.