Asked by
monica hawkins
on Dec 11, 2024
Verified
Refer to Figure 4-17. If the government imposes a price ceiling in this market at a price of $5.00, the result would be a
A) shortage of 20 units.
B) shortage of 10 units.
C) surplus of 20 units.
D) surplus of 10 units.
Price Ceiling
A legal maximum price set by the government for a particular good or service, intended to prevent prices from becoming excessively high.
Shortage
A situation where the demand for a product exceeds its supply in a market.
Units
The fundamental quantities or measurements in which variables, goods, services, or products are expressed or quantified.
- Acquire knowledge on how price ceilings and floors affect the behavior of markets.
Verified Answer
MC
Learning Objectives
- Acquire knowledge on how price ceilings and floors affect the behavior of markets.