-In Figure 4-2,if the government imposes a price ceiling of $2,the result will be
A) equilibrium
B) excess supply
C) no different than before the price ceiling is imposed
D) excess demand
E) the demand shifts leftward and supply shifts rightward

Question

-In Figure 4-2,if the government imposes a price ceiling of $2,the result will be
A) equilibrium 
B) excess supply 
C) no different than before the price ceiling is imposed 
D) excess demand 
E) the demand shifts leftward and supply shifts rightward

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in excess demand, as the quantity demanded exceeds the quantity supplied at that price.

-In Figure 4-2,if the Government Imposes a Price Ceiling of $2,the