-Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?
A) a surplus of 2,000 garbanzo beans
B) a shortage of 2,000 garbanzo beans
C) no change, equilibrium would prevail
D) The quantity demanded of garbanzo beans would fall to zero.

Question

-Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?
A) a surplus of 2,000 garbanzo beans 
B) a shortage of 2,000 garbanzo beans 
C) no change, equilibrium would prevail 
D) The quantity demanded of garbanzo beans would fall to zero.

Quizplus · Accepted Answer

A price ceiling of $4 is below the equilibrium price, leading to a higher quantity demanded than supplied, resulting in a shortage.

-Consider the Above Table