Refer to figure 6-2. the price ceiling

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percent decrease in the quantity demanded. d. 10 percent decrease in the quantity demanded. Figure 6-2 Price Supply 2 Price ceiling Demand 180 Quantity 120 60 80 15 Refer to Figure 6-2. The price ceiling a. causes a shortage of 40 units. b. is not binding, because it is set above the equilibrium price. c. causes a shortage of 45 units. d. causes a shortage of 85 units. 16. Refer to Figure 6-2. The price ceiling causes quantity a. supplied to exceed quantity demanded by 45 units. b. supplied to exceed quantity demanded by 85 units. c. demanded to exceed quantity supplied by 45 units. d. demanded to exceed quantity supplied by 85 units.

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Answer

15. d) The price ceiling causes a
shortage as supply < demand
(at the given price)

Demand = 165 and Supply = 80

Shortage = 85 units

16. d) Quantity demanded exceeds quantity supplied by 85
units


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