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

Question

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

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price (assuming the equilibrium price is higher than $4) would result in a shortage because the quantity demanded would exceed the quantity supplied at that price point, leading to a shortage of 2,000 pounds if the numbers from the table indicate such a difference at the $4 price point.

-Consider the Above Table