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 at $2 shows a price ceiling imposed by the government. Which of the following statements is true at this price?

A) At the price ceiling the surplus equals 400 units.
B) At the price ceiling the shortage equals 400 units.
C) At the price ceiling the surplus equals 300 units.
D) At the price ceiling the shortage equals 200 units.