Use the following table to answer the following questions.
Market for Corn

-If the price ceiling for corn is $2.50,what amount and type of disequilibrium would be present in the market for corn?
A) There would be neither a shortage nor a surplus.
B) There would be a surplus of 61,000.
C) There would be a shortage of 61,000.
D) There would be a shortage of 186,000.
E) There would be a shortage of 125,000.

Question

Use the following table to answer the following questions.
Market for Corn
 
-If the price ceiling for corn is $2.50,what amount and type of disequilibrium would be present in the market for corn?
A) There would be neither a shortage nor a surplus. 
B) There would be a surplus of 61,000. 
C) There would be a shortage of 61,000. 
D) There would be a shortage of 186,000. 
E) There would be a shortage of 125,000.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price creates a shortage because the quantity demanded exceeds the quantity supplied at that price. Without specific market data, the exact number (61,000 in this case) cannot be determined from the information given, but the concept applies.

Use the Following Table to Answer the Following Questions