(Figure: Determining Surplus and Loss) In the graph, if the government sets a maximum price of $5, there is a shortage of 40 units.

Question

Quizplus · Accepted Answer

Looking at the graph, setting a maximum price of $5 would cause the quantity demanded to exceed the quantity supplied, resulting in a shortage of 40 units (the difference between the quantity demanded at that price, which is 60, and the quantity supplied at that price, which is 20).

(Figure: Determining Surplus and Loss) in the Graph, If the Government