The figure below shows the market for Good X:

-Refer to the figure above.How many units of Good X will be supplied if the government sets a price ceiling of Pc on the good?

Question

The figure below shows the market for Good X:
 
-Refer to the figure above.How many units of Good X will be supplied if the government sets a price ceiling of Pc on the good?

Quizplus · Accepted Answer

With a price ceiling of Pc set by the government, the price of Good X will be below where the supply and demand curves intersect. As a result, the quantity supplied will be equal to the quantity demanded at that price, which is 10 units. Therefore, the answer is B.

The Figure Below Shows the Market for Good X