Scenario: Keeping beef prices low makes the Argentine government popular among lower income urban voters, whose food costs use up a substantial portion of their incomes. So the Argentine government imposes a price ceiling of 60 pesos per kilo on retail beef.
-Refer to the scenario above.At this price control price,consumers demand ________ million kilos of beef,but suppliers are willing to supply only ________ million kilos,so there is ________ of ________ million kilos of beef.
A) 120; 120; neither surplus nor shortage; zero
B) 80; 120; a surplus; 40
C) 160; 40; a shortage; 120
D) 120; 80; a shortage; 40

Question

Quizplus · Accepted Answer

At a price ceiling of 60 pesos per kilo, consumers demand 160 million kilos of beef, but suppliers are willing to supply only 40 million kilos, so there is a shortage of 120 million kilos of beef.

Scenario: Keeping Beef Prices Low Makes the Argentine Government Popular