Figure 6-13
This figure shows the market demand and market supply curves for good X.
-Refer to Figure 6-13.If the government imposes a price ceiling of $4 on this market,then there will be

Question

Figure 6-13
This figure shows the market demand and market supply curves for good X. 
-Refer to Figure 6-13.If the government imposes a price ceiling of $4 on this market,then there will be

Quizplus · Accepted Answer

At a price ceiling of $4, the quantity demanded will be higher than the quantity supplied (point E on the graph). The difference between the quantity demanded and the quantity supplied is the shortage, which is the vertical distance between the demand and supply curves at the price ceiling. At a price of $4, the quantity demanded is 25 units, while the quantity supplied is only 15 units, resulting in a shortage of 10 units (25-15=10). Therefore, choice C is correct.

Figure 6-13 This Figure Shows the Market Demand and Market Supply Curves