Figure 6-16

-Refer to Figure 6-16. A price ceiling set at $70 would create a shortage of 40 units.

Question

Figure 6-16
​
  ​
-Refer to Figure 6-16. A price ceiling set at $70 would create a shortage of 40 units.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price causes a shortage by increasing the quantity demanded and decreasing the quantity supplied. However, without specific details from "Figure 6-16," such as the equilibrium price or the quantities involved, it's impossible to confirm the exact size of the shortage created by a price ceiling set at $70.

Figure 6-16 ​

Figure 6-16