(Figure: The Alaskan Crab Market) Use Figure: The Alaskan Crab Market. If the government imposes a price ceiling of $15, the quantity of crab exchanged will be:
A)500 pounds.
B)750 pounds.
C)1,000 pounds.
D)1,500 pounds.

Question

(Figure: The Alaskan Crab Market) Use Figure: The Alaskan Crab Market. If the government imposes a price ceiling of $15, the quantity of crab exchanged will be: 
A)500 pounds. 
B)750 pounds. 
C)1,000 pounds. 
D)1,500 pounds.

Quizplus · Accepted Answer

In the given figure, the equilibrium price of crab is $20 and the equilibrium quantity is 750 pounds. If the government imposes a price ceiling of $15, it is below the equilibrium price, and the quantity demanded exceeds the quantity supplied resulting in a shortage. Therefore, buyers will demand 750 pounds of crab, but sellers will only be willing to supply 500 pounds. So, the quantity of crab exchanged will be the lower quantity of 500 pounds. Hence, the best choice is B.

(Figure: the Alaskan Crab Market) Use Figure: the Alaskan Crab