FIGURE 5-3 -Refer to Figure 5-3.Suppose P₃ represents a price imposed by the government.The result would be A)excess supply of Q₃Q₄. B)excess supply of Q₃Q₀. C)excess demand of Q₀Q₂. D)excess demand of Q₁Q₂. E)excess demand of Q₃Q₄.

Question

Quizplus · Accepted Answer

P₃ is above the equilibrium price (Q₂) and below the demand curve (Q₄). This means that there will be excess demand, which is represented by the distance between Q₃ and Q₄. Therefore, the correct answer is E, excess demand of Q₃Q₄.

FIGURE 5-3 -Refer to Figure 5-3.Suppose P3 Represents a Price Imposed by Imposed

FIGURE 5-3 -Refer to Figure 5-3.Suppose P₃ Represents a Price Imposed by Imposed