Exhibit 4.8
-The Exhibit given below depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?
A) In equilibrium, the quantity demanded is 800 gallons.
B) There is a surplus when the price per gallon is $1.
C) The quantity demanded at the price ceiling will equal the quantity produced.
D) The equilibrium price would be $1 per unit without the price ceiling.
E) The quantity supplied at the price ceiling is 500 gallons.
Correct Answer:
Verified
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