Answered: If government sets a price ceiling of…

If government sets a price ceiling of $8 per unit in the market illustrated in the diagram, the result would be a shortage of 20 units. a surplus of 20 units. a shortage of 10 units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Use the diagram below to answer"
$22
$20
S
$18
$16
$14
$12
$10
$8
$6
$4
$2
D
SO
10
20
30
40
50
60
Quantity
If
government sets a price ceiling of $8 per unit in the market illustrated in the
diagram, the result would be
a shortage of 20 units.
a surplus of 20 units.
a shortage of 10 units.
a surplus of 10 units.
There is not enough information to answer this question.
Price

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