The Following Questions Refer to the graph below. -The demand curve and supply curve for beef are DD and SS.The demand curve shifts to D₁D₁ and a price ceiling is placed on beef at price p.The result will be A)A surplus equal to X₁X B)A shift in the supply curve to S₁S₁ C)An increase in the quantity placed on the market to X₁ D)Both (b)and (c)above E)A shortage equal to X₁X

Question

Quizplus · Accepted Answer

When the demand curve shifts to D₁, the equilibrium price and quantity move from point A to point B on the graph. If a price ceiling is placed on beef at price p, it is below the equilibrium price and creates excess demand or a shortage. The quantity demanded exceeds the quantity supplied by the producers, which is X₁X on the graph. Therefore, the correct answer is E.

The Following Questions Refer to the Graph Below