%media ch06_42_43. j p g %If a price ceiling of $10 is set in the market shown in the graph, the quantity exchanged will:

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price (which is at $12 in the graph) will create a shortage by reducing the quantity supplied and increasing the quantity demanded. The equilibrium quantity is 12 units, but at a price ceiling of $10, the quantity supplied decreases to 8 units, thus falling by 4 units from the equilibrium quantity.

%Media Ch06_42_43