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Use the Following to Answer Questions

Question 7

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Use the following to answer questions:
Figure: Supply and Demand Use the following to answer questions: Figure: Supply and Demand -(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P<sub>1 </sub>causes: A) a shortage equal to the distance AB. B) a surplus equal to the distance AB. C) a shortage equal to the distance DE. D) no change to the market.
-(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P1 causes:


A) a shortage equal to the distance AB.
B) a surplus equal to the distance AB.
C) a shortage equal to the distance DE.
D) no change to the market.

Correct Answer:

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