Use the following to answer questions:
-(Table: Quantity Supplied and Quantity Demanded) Look at the table Quantity Supplied and Quantity Demanded. If a price ceiling of $10 is imposed in this market:
A) the quantity demanded will be greater than the quantity supplied.
B) the quantity supplied will be greater than the quantity demanded.
C) an equilibrium quantity will result.
D) excess supply equal to 25 units will result.

Question

Use the following to answer questions: 
-(Table: Quantity Supplied and Quantity Demanded) Look at the table Quantity Supplied and Quantity Demanded. If a price ceiling of $10 is imposed in this market:
A) the quantity demanded will be greater than the quantity supplied. 
B) the quantity supplied will be greater than the quantity demanded. 
C) an equilibrium quantity will result. 
D) excess supply equal to 25 units will result.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price causes a shortage, where the quantity demanded exceeds the quantity supplied.

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