The following figure illustrates the demand and supply curves for a good. Price (5) 888 60 40 0 5 10 20 30 Supply Demand Quantity (unit) Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market? O There will be a shortage of 25 units in the market. O There will be a surplus of 10 units in the market. O There will be a surplus of 25 units in the market. O There will be a shortage of 10 units in the market.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The following figure illustrates the demand and supply curves for a good.
Price (5)
888
60
40
0
5 10 20
30
Supply
Demand
Quantity
(unit)
Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market?
O There will be a shortage of 25 units in the market.
O There will be a surplus of 10 units in the market.
O There will be a surplus of 25 units in the market.
O There will be a shortage of 10 units in the market.
Transcribed Image Text:The following figure illustrates the demand and supply curves for a good. Price (5) 888 60 40 0 5 10 20 30 Supply Demand Quantity (unit) Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market? O There will be a shortage of 25 units in the market. O There will be a surplus of 10 units in the market. O There will be a surplus of 25 units in the market. O There will be a shortage of 10 units in the market.
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