Use the following to answer question:
-(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and Quantity Demanded.A government-imposed price ceiling equal to $5 would result in:
A)the equilibrium quantity being bought and sold in this market.
B)excess demand.
C)excess supply.
D)a surplus occurring in this market.

Question

Use the following to answer question: 
-(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and Quantity Demanded.A government-imposed price ceiling equal to $5 would result in:
A)the equilibrium quantity being bought and sold in this market. 
B)excess demand. 
C)excess supply. 
D)a surplus occurring in this market.

Quizplus · Accepted Answer

At a price ceiling of $5, the quantity demanded would exceed the quantity supplied, resulting in excess demand. This is because suppliers are not willing to supply as much at a lower price, while consumers are willing to buy more at a lower price. Therefore, there would be a shortage in the market, and some consumers would be unable to purchase the goods they want at the given price.

Use the Following to Answer Question