Refer to the accompanying figure to answer the questions that follow.

-If there is a $60 price ceiling imposed on a textbook,what will be the disequilibrium amount?
A) There will be a shortage of 800,000 textbooks.
B) There will be a surplus of 800,000 textbooks.
C) There will be neither a shortage nor a surplus.
D) There will be a shortage of 2.6 million textbooks.
E) There will be a shortage of 400,000 textbooks.

Question

Refer to the accompanying figure to answer the questions that follow.
 
-If there is a $60 price ceiling imposed on a textbook,what will be the disequilibrium amount?
A) There will be a shortage of 800,000 textbooks. 
B) There will be a surplus of 800,000 textbooks. 
C) There will be neither a shortage nor a surplus. 
D) There will be a shortage of 2.6 million textbooks. 
E) There will be a shortage of 400,000 textbooks.

Quizplus · Accepted Answer

At the price ceiling of $60, the quantity demanded exceeds the quantity supplied, creating a shortage in the market. The size of the shortage can be found by subtracting the quantity supplied at the price ceiling ($2 million textbooks) from the quantity demanded at the ceiling ($2.8 million textbooks), which equals 800,000 textbooks. Therefore, choice A is correct.

Refer to the Accompanying Figure to Answer the Questions That