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Figure: Price Controls
-(Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:
A) surplus of 20 units.
B) surplus of 10 units.
C) shortage of 20 units.
D) shortage of 10 units.

Question

Use the following to answer questions:
Figure: Price Controls 
-(Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:
A) surplus of 20 units. 
B) surplus of 10 units. 
C) shortage of 20 units. 
D) shortage of 10 units.

Quizplus · Accepted Answer

At a price ceiling of $6, the quantity demanded is 30 and quantity supplied is only 10. Therefore, there would be a shortage of 20 units.

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