Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 8P
Related questions
Question
Refer to the above table. If the government implemented a price control at $20 which of the following is true?
![Refer to the above table. If the government implemented a price control at $20 which of the following is true?
Quantity Demanded
2.000
1,800
1.600
Unit Price
$5
Quantity Supplied
10
300
15
20
600
1,400
1.200
1,000
900
25
1.200
30
1,500
O The market is at equilibrium
O There would be a shortage of 500 units
O Price would decrease
O There would be a surplus of 500 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ed6d6c1-ddcb-43f1-9dd8-fe79979ed6c9%2F0788015e-e925-4452-98ff-e680d67a795d%2F0yluj8a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Refer to the above table. If the government implemented a price control at $20 which of the following is true?
Quantity Demanded
2.000
1,800
1.600
Unit Price
$5
Quantity Supplied
10
300
15
20
600
1,400
1.200
1,000
900
25
1.200
30
1,500
O The market is at equilibrium
O There would be a shortage of 500 units
O Price would decrease
O There would be a surplus of 500 units
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