Consider a Market for Fish Whose Market Demand and Market

Multiple Choice

Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively.The government decides to impose a price ceiling of $50 per ton.What would be the resulting market distortion?

A) Shortage of 120 tons of fish
B) Shortage of 175 tons of fish
C) Surplus of 120 tons of fish