Figure 4-17
-Refer to Figure 4-17. If the government imposes a price ceiling in this market at a price of $5.00, the result would be a
A) shortage of 20 units.
B) shortage of 10 units.
C) surplus of 20 units.
D) surplus of 10 units.

Question

Figure 4-17 
-Refer to Figure 4-17. If the government imposes a price ceiling in this market at a price of $5.00, the result would be a
A) shortage of 20 units. 
B) shortage of 10 units. 
C) surplus of 20 units. 
D) surplus of 10 units.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a shortage because the quantity demanded exceeds the quantity supplied at that price.

Figure 4-17 -Refer to Figure 4-17. If the Government Imposes a Price