Use the following to answer question 24:
-(Table: The Market for Banana Muffins)Look at the table The Market for Banana Muffins.In response to popular anger over the high price of banana muffins and the extreme wealth of banana muffin producers,the government imposes a price ceiling of $1.20 per banana muffin.From this table,the price ceiling causes a _____ banana muffins.
A) shortage of 3 000
B) shortage of 5 000
C) surplus of 8 000
D) surplus of 3 000

Question

Use the following to answer question 24: 
-(Table: The Market for Banana Muffins)Look at the table The Market for Banana Muffins.In response to popular anger over the high price of banana muffins and the extreme wealth of banana muffin producers,the government imposes a price ceiling of $1.20 per banana muffin.From this table,the price ceiling causes a _____ banana muffins.
A) shortage of 3 000 
B) shortage of 5 000 
C) surplus of 8 000 
D) surplus of 3 000

Quizplus · Accepted Answer

The price ceiling of $1.20 is below the equilibrium price of $1.50, causing a shortage of 3,000 banana muffins (the difference between the quantity demanded and the quantity supplied at the price ceiling).

Use the Following to Answer Question 24