(Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions) Use Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions. If a price ceiling of $10 is imposed in this market:
A)the quantity demanded will exceed the quantity supplied.
B)the quantity supplied will exceed the quantity demanded.
C)the equilibrium quantity will be produced.
D)there will be a surplus of 25 units.

Question

(Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions) Use Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions. If a price ceiling of $10 is imposed in this market: 
A)the quantity demanded will exceed the quantity supplied. 
B)the quantity supplied will exceed the quantity demanded. 
C)the equilibrium quantity will be produced. 
D)there will be a surplus of 25 units.

Quizplus · Accepted Answer

At a price ceiling of $10, the quantity demanded is 140 units, which exceeds the quantity supplied of 115 units. Therefore, there will be a shortage of 25 units (not a surplus). Choice A is the best answer.