Exhibit 4-13

-Refer to the exhibit.The horizontal line, P, represents a price ceiling imposed by the government.Which statement best describes what is happening in this market?

Question

Exhibit 4-13
 
-Refer to the exhibit.The horizontal line, P, represents a price ceiling imposed by the government.Which statement best describes what is happening in this market?

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a shortage, where the quantity supplied is less than the quantity demanded. Therefore, the quantity supplied at the price ceiling will equal the quantity sold, as suppliers cannot sell more than they produce.

Exhibit 4-13 -Refer to the Exhibit.The Horizontal Line, P, Represents a Price