Reference: Ref 8-2 (Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:
A) surplus of 20 units.
B) surplus of 10 units.
C) shortage of 20 units.
D) shortage of 10 units.

Question

Reference: Ref 8-2 (Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:
A) surplus of 20 units. 
B) surplus of 10 units. 
C) shortage of 20 units. 
D) shortage of 10 units.

Quizplus · Accepted Answer

The Answer is C

Reference: Ref 8-2 (Figure: Price Controls) Refer to the Figure