Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
Related questions
Question
![Question 21
Figure #1
Price
$20
18
16
14
12
10
8
6.
4
10 20 30 40 50 60 70 80 90 100 Quantity
Refer to Figure #1. If the government imposes a price floor at S14. there would be a
O shortage of 40 units and the law of supply would force the price falling from S14 to a lower price to get rid of the shortage
O shortage of 40 units and the law of supply would force the price rising up from $14 to a higher price to get rid of the shortage
O surplus of 40 units and the law of supply and demand would force the price falling from S14 to $10 to get the surplus
O surplus of 40 units and the law of supply and demand are not allowed to force the price falling from $14 to $10 to clear the surplus](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7bfeb46a-1b12-4010-8d3d-4840c72af99a%2F96d77e2d-bb06-4f47-a5e9-43ff6ac083ec%2Fglp1uma_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 21
Figure #1
Price
$20
18
16
14
12
10
8
6.
4
10 20 30 40 50 60 70 80 90 100 Quantity
Refer to Figure #1. If the government imposes a price floor at S14. there would be a
O shortage of 40 units and the law of supply would force the price falling from S14 to a lower price to get rid of the shortage
O shortage of 40 units and the law of supply would force the price rising up from $14 to a higher price to get rid of the shortage
O surplus of 40 units and the law of supply and demand would force the price falling from S14 to $10 to get the surplus
O surplus of 40 units and the law of supply and demand are not allowed to force the price falling from $14 to $10 to clear the surplus
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning