Exhibit 4-10 Supply and demand data for apricots

Bushels demanded
per month

Price per
bushel

Bushels supplied
per month

50

$5

80

55

4

75

60

3

70

65

2

65

70

1

55

Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10? A) There would be a shortage of apricots. B) Buyers would not want to purchase all of the apricots that are supplied. C) There would be a surplus of apricots. D) Farmers would reduce the number of acres allocated to the growing of apricots.

Question

Exhibit 4-10 Supply and demand data for apricots

Bushels demanded per month	Price per bushel	Bushels supplied per month
50	$5	80
55	4	75
60	3	70
65	2	65
70	1	55

Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10? A) There would be a shortage of apricots. B) Buyers would not want to purchase all of the apricots that are supplied. C) There would be a surplus of apricots. D) Farmers would reduce the number of acres allocated to the growing of apricots.

Quizplus · Accepted Answer

A price ceiling of $1 is below the equilibrium price of $1.50. At this price, quantity demanded would exceed quantity supplied, resulting in a shortage of apricots.

Exhibit 4-10 Supply and Demand Data for Apricots