Exhibit 4-1
-Refer to Exhibit 4-1.In a free market,________ units of the good would be exchanged.With a price ceiling,_______ units of the good would be exchanged.

Question

Exhibit 4-1 
-Refer to Exhibit 4-1.In a free market,________ units of the good would be exchanged.With a price ceiling,_______ units of the good would be exchanged.

Quizplus · Accepted Answer

In a free market, the equilibrium quantity is exchanged, which is 125 units. With a price ceiling, the quantity exchanged is limited to 75 units due to the lower price leading to a shortage.

Exhibit 4-1 -Refer to Exhibit 4-1.In a Free Market,________ Units of the Units