(Figure: The Market for Microeconomics Textbooks) Use Figure: The Market for Microeconomics Textbooks. Suppose the government believes that microeconomics textbooks are too expensive and wants to make them more affordable, ensuring that they are available to students. Given a price ceiling of $80, the market outcome would be a _____ of _____ textbooks.
A)surplus; 30
B)surplus; 10
C)shortage; 30
D)shortage; 10

Question

(Figure: The Market for Microeconomics Textbooks) Use Figure: The Market for Microeconomics Textbooks. Suppose the government believes that microeconomics textbooks are too expensive and wants to make them more affordable, ensuring that they are available to students. Given a price ceiling of $80, the market outcome would be a _____ of _____ textbooks. 
A)surplus; 30 
B)surplus; 10 
C)shortage; 30 
D)shortage; 10

Quizplus · Accepted Answer

A price ceiling of $80 is below the original equilibrium price of $100. At this lower price, the quantity demanded increases to 70 textbooks while the quantity supplied decreases to 40 textbooks. This results in a shortage of 30 textbooks (70 - 40 = 30).

(Figure: the Market for Microeconomics Textbooks) Use Figure: the Market