Use the following to answer questions:
-(Table: Quantity Supplied and Quantity Demanded) Look at the 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 questions: 
-(Table: Quantity Supplied and Quantity Demanded) Look at the 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

A price ceiling set below the equilibrium price leads to excess demand, as the quantity demanded exceeds the quantity supplied at that price.

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