Use the following to answer question:
-(Table: Market for Butter) Look at the table Market for Butter. If the government imposes a price ceiling of $0.90 per pound of butter, the quantity of butter actually purchased will be:
A) 10.5 million pounds.
B) 9.0 million pounds.
C) 1.5 million pounds.
D) 10.0 million pounds.

Question

Use the following to answer question: 
-(Table: Market for Butter) Look at the table Market for Butter. If the government imposes a price ceiling of $0.90 per pound of butter, the quantity of butter actually purchased will be:
A) 10.5 million pounds. 
B) 9.0 million pounds. 
C) 1.5 million pounds. 
D) 10.0 million pounds.

Quizplus · Accepted Answer

A price ceiling of $0.90 per pound is below the equilibrium price, leading to a shortage. The quantity purchased will be the quantity supplied at that price, which is 9.0 million pounds.

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