Multiple Choice
In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as QD = 400 - 250P and QS = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. As a result of the price ceiling, there is a shortage of:
A) 250 pounds of cotton.
B) 200 pounds of cotton.
C) 150 pounds of cotton.
D) 100 pounds of cotton.
Correct Answer:
Verified
Correct Answer:
Verified
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