Refer to Table 5-1. Suppose that D1 and S2 are the demand and supply schedules for Product A. If the government imposes a price ceiling of $4, then:
A. a 5 unit shortage will result.
B. a 5 unit surplus will result.
C. a 10 unit surplus will result.
D. a 10 unit shortage will result.
Answer:D
Refer to Table 5-1. Suppose that D1 and S2 are the demand and supply schedules for Product A. If the government imposes a price ceiling of $4, then:
A. a 5 unit shortage will result. B. a 5 unit surplus will result. C. a 10 unit surplus will result. D. a 10 unit shortage will result.
Explanation: Essay Questions