Use the following to answer question:
Figure: The Shrimp Market
-(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a price:
A) floor of $15.
B) floor of $10.
C) ceiling of $10.
D) floor of $15 or ceiling of $10.

Question

Use the following to answer question:
Figure: The Shrimp Market 
-(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a price:
A) floor of $15. 
B) floor of $10. 
C) ceiling of $10. 
D) floor of $15 or ceiling of $10.

Quizplus · Accepted Answer

A price floor of $15 would set the price above equilibrium, reducing quantity demanded to 500 pounds. A price ceiling of $10 would set the price below equilibrium, reducing quantity supplied to 500 pounds. Both achieve the desired limit.

Use the Following to Answer Question