The following figure illustrates the demand and supply curves for a good in a competitive market.
-Refer to the figure above.Suppose a price control of $3.50 is imposed on this market.What would be a consequence of this price control policy?
A) A surplus of 4 units
B) A shortage of 8 units
C) A shortage of 4 units
D) A shortage of 7 units.
Correct Answer:
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