A government decides to set a price ceiling on eggs so that eggs are affordable to the poor. The conditions of demand and supply are given in the table below. What will the excess supply or the shortage be if the price ceiling is set at $2.00? Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 Question 50 options: a) 8,500 excess supply. b) 3,000 excess supply. c) 1,500 shortage. d) 3,000 shortage.
A government decides to set a price ceiling on eggs so that eggs are affordable to the poor. The conditions of demand and supply are given in the table below. What will the excess supply or the shortage be if the price ceiling is set at $2.00? Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 Question 50 options: a) 8,500 excess supply. b) 3,000 excess supply. c) 1,500 shortage. d) 3,000 shortage.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A government decides to set a
| Price | Qd | Qs |
|---|---|---|
| $1.60 | 9,000 | 5,000 |
| $2.00 | 8,500 | 5,500 |
| $2.40 | 8,000 | 6,400 |
| $2.80 | 7,500 | 7,500 |
| $3.20 | 7,000 | 9,000 |
| $3.60 | 6,500 | 11,000 |
| $4.00 | 6,000 | 15,000 |
Question 50 options:
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