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Figure: Price Ceiling
-(Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a:
A) shortage of 270 units.
B) shortage of 40 units.
C) surplus of 270 units.
D) surplus of 40 units.

Question

Use the following to answer questions:
Figure: Price Ceiling 
-(Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a:
A) shortage of 270 units. 
B) shortage of 40 units. 
C) surplus of 270 units. 
D) surplus of 40 units.

Quizplus · Accepted Answer

At the price ceiling of $10, the quantity demanded is 310 units, while the quantity supplied is 270 units, resulting in a shortage of 40 units (310-270=40). Therefore, the correct answer is B.

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