Exhibit 4-2
Exhibit 4-2 represents the orange juice market. The horizontal line at $2 shows a price ceiling imposed by the government. Which of the following statements is true at this price?

Question

Exhibit 4-2 
Exhibit 4-2 represents the orange juice market. The horizontal line at $2 shows a price ceiling imposed by the government. Which of the following statements is true at this price?

Quizplus · Accepted Answer

At the price ceiling of $2, the quantity demanded exceeds the quantity supplied, creating a shortage. The shortage can be calculated as the difference between the quantity demanded (800 units) and the quantity supplied (400 units) which equals 400 units. Therefore, the correct answer is B.

Exhibit 4-2 Exhibit 4-2 Represents the Orange Juice Market. the Horizontal Line