Assume that the market clearing price for a shirt is $20, but that the maximum price that can be charged is $15. This is an example of

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The market clearing price, which is the price at which quantity demanded equals quantity supplied, is $20. However, the maximum price that can be charged is $15, which is below the market clearing price. This creates a price ceiling, which is a price control that limits the maximum price that can be charged for a good or service. When a price ceiling is set below the market clearing price, it is likely to lead to a shortage of the good, as suppliers will not be willing to produce as much at the lower price, while consumers will demand more at the lower price. Therefore, the best choice is D, a price ceiling that will likely lead to a shortage of shirts on the market.

Assume That the Market Clearing Price for a Shirt Is