If the government set a price ceiling of $40, there would be: Group of answer choices a shortage (or excess supply) of about 8 u

Question

3 years ago

9

nits a shortage (or excess supply) of about 12 units a surplus (or excess demand) of about 8 units a surplus (or excess demand) of about 12 units

1 answer:

satela [25.4K] · Answer 1 · 2022-01-19T02:24:08+03:00

Answer:

A surplus (or excess demand) of about 8 units

Explanation:

The picture attached shows the diagram necessary for the question which is part of the question. Solution is given below;

At the above ceiling at price of 40$

Quantity supplied will be 16

Quantity demanded will be 24

So when demand is more than supply than there will be a shortage in quantity by (24-16) 8 units.

When there is demand more than supply than it is an excess demand.

So surplus or excess demand by 8 units.