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Figure: Price Ceiling
-(Figure: Price Ceiling) Refer to the figure. If a price ceiling were set at $12, there would be a:
A) shortage of 50 units.
B) surplus of 40 units.
C) shortage of 0 units.
D) surplus of 20 units.

Question

Use the following to answer questions:
Figure: Price Ceiling 
-(Figure: Price Ceiling) Refer to the figure. If a price ceiling were set at $12, there would be a:
A) shortage of 50 units. 
B) surplus of 40 units. 
C) shortage of 0 units. 
D) surplus of 20 units.

Quizplus · Accepted Answer

At a price ceiling of $12, the quantity demanded is 500 units and the quantity supplied is also 500 units, which means there is neither a shortage nor a surplus of units. The market is at equilibrium.

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