Reference: Ref 8-1 (Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a:
A) shortage of 270 units.
B) shortage of 40 units.
C) surplus of 270 units.
D) surplus of 40 units.

Question

Reference: Ref 8-1 (Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a:
A) shortage of 270 units. 
B) shortage of 40 units. 
C) surplus of 270 units. 
D) surplus of 40 units.

Quizplus · Accepted Answer

At the price ceiling of $10, the quantity demanded is 360 units and the quantity supplied is only 320 units, resulting in a shortage of 40 units (360-320=40).

Reference: Ref 8-1 (Figure: Price Ceiling) Refer to the Figure