Exhibit 4-2 Exhibit 4-2 Represents the Orange Juice Market. the Horizontal Line

Multiple Choice

Exhibit 4-2
Exhibit 4-2 represents the orange juice market. The horizontal line represents a price ceiling imposed by the government. Which of the following is true?

A) At equilibrium, the quantity demanded is 700 units.
B) At the price ceiling, there is a surplus of orange juice.
C) The quantity supplied at the price ceiling will equal the quantity exchanged.
D) The quantity demanded at the price ceiling will equal the quantity supplied.
E) The quantity demanded at the price ceiling will equal the quantity exchanged.