Refer to the graph shown. Which statement best characterizes the difference between the effect of a price ceiling in the short run and the long run? A) A price ceiling of P₀ will create a shortage of (Q₄ − Q₀) in the short run and the long run. B) A price ceiling of P₂ will create a shortage of (Q₃ − Q₀) in the short run and a smaller shortage of (Q₃ − Q₁) in the long run. C) A price ceiling of P₂ will create a shortage of (Q₃ − Q₁) in the short run, but a greater shortage of (Q₃ − Q₀) in the long run. D) A price ceiling of P₀ will create a shortage of (Q₃ − Q₀) in the short run and the long run.

Question

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Which statement best characterizes the difference between the effect of a price ceiling in the short run and the long run? A) A price ceiling of P₀ will create a shortage of (Q₄ − Q₀) in the short run and the long run. B) A price ceiling of P₂ will create a shortage of (Q₃ − Q₀) in the short run and a smaller shortage of (Q₃ − Q₁) in the long run. C) A price ceiling of P₂ will create a shortage of (Q₃ − Q₁) in the short run, but a greater shortage of (Q₃ − Q₀) in the long run. D) A price ceiling of P₀ will create a shortage of (Q₃ − Q₀) in the short run and the long run.

Refer to the Graph Shown