Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3
-Refer to Figure 4.3. At an effective price ceiling for pencils,
A) quantity demanded is greater than quantity supplied.
B) quantity demanded is less than quantity supplied.
C) quantity demanded is equal to quantity supplied.
D) price is above equilibrium.

Question

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.  Figure 4.3
-Refer to Figure 4.3. At an effective price ceiling for pencils,
A) quantity demanded is greater than quantity supplied. 
B) quantity demanded is less than quantity supplied. 
C) quantity demanded is equal to quantity supplied. 
D) price is above equilibrium.

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a quantity demanded that is greater than the quantity supplied, leading to a shortage.

Refer to the Information Provided in Figure 4