(Table: Market for Fried Ice Cream) Use Table: Market for Fried Ice Cream. As it is a summer favorite, and in the belief that prices are on average too high, the government imposes a price ceiling of $3.70 per cup of Fried Ice Cream. Based on the following table, the price ceiling causes a _____ fried ice creams.
A)shortage of 3,000
B)shortage of 5,000
C)surplus of 8,000
D)surplus of 3,000

Question

(Table: Market for Fried Ice Cream) Use Table: Market for Fried Ice Cream. As it is a summer favorite, and in the belief that prices are on average too high, the government imposes a price ceiling of $3.70 per cup of Fried Ice Cream. Based on the following table, the price ceiling causes a _____ fried ice creams. 
A)shortage of 3,000 
B)shortage of 5,000 
C)surplus of 8,000 
D)surplus of 3,000

Quizplus · Accepted Answer

According to the table, the quantity demanded at a price of $3.70 per cup is 14,000 while the quantity supplied is only 11,000. This creates a shortage of 3,000 cups of Fried Ice Cream.