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?| Unit Price | Quantity Demanded | Quantity Supplied ||------------|-------------------|-------------------|| $5 | 2,000 | 0 || 10 | 1,800 | 300 || 15 | 1,600 | 600 || 20 | 1,400 | 900 || 25 | 1,200 | 1,200 || 30 | 1,000 | 1,500 |- ○ The market is at equilibrium- ○ This would be considered a free market- ○ This would be considered a Price Ceiling- ○ This would be considered a Price Floor### Explanation:The table shows the relationship between unit price, quantity demanded, and quantity supplied. - At $20, the quantity demanded is 1,400 and the quantity supplied is 900, indicating a situation where demand exceeds supply, leading to a shortage.- The options ask about different market control conditions. A price ceiling is a maximum price set below equilibrium to make goods more affordable, often resulting in shortages, which fits the scenario at $20.

A market is in equilibrium at quantity demanded equal to quantity supplied. A shortage is where the…

Answered: Refer to the above table. If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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