(Table: Market for Butter)Use Table: Market for Butter.If the government imposes a price ceiling of $0.90 per pound of butter,the quantity of butter actually purchased will be _____ million pounds.
A)10.5
B)9.0
C)1.5
D)10.0

Question

(Table: Market for Butter)Use Table: Market for Butter.If the government imposes a price ceiling of $0.90 per pound of butter,the quantity of butter actually purchased will be _____ million pounds. 
A)10.5 
B)9.0 
C)1.5 
D)10.0

Quizplus · Accepted Answer

At a price ceiling of $0.90, there will be excess demand for butter as the quantity demanded (10 million pounds) exceeds the quantity supplied (9 million pounds). Therefore, the actual quantity of butter purchased will be the quantity supplied, which is 9 million pounds. Thus, the answer is B) 9.0.