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Delicious77 [7]
3 years ago
10

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. A graph titled Price Controls G

raph 1 has Quantity on the x-axis and price on the y-axis. Demand has a negative slope and supply has a positive slope. Points are on the demand line and the supply line at the same price. Excess supply is indicated between the 2 points. Both points are above the point of equilibrium. On this graph, the top horizontal line represents a price floor set above equilibrium. a price floor set below equilibrium. a price ceiling set above equilibrium. a price ceiling set below equilibrium.
History
2 answers:
Aleks04 [339]3 years ago
3 0

Answer:

a price ceiling set below equilibrium.

Explanation:

When interpreting the description of the graph described above, we can say that the upper horizontal line represents a situation where there is a lot of demand and little supply of the same product. This situation results in excess demand and excesses of the product.

When this situation occurs, we have an example of a price ceiling established below the equilibrium point between demand and supply.

In this case, it is important to mention that the price ceiling is the term that defines the maximum price that a product can reach.

strojnjashka [21]3 years ago
3 0

Answer:

D) A price ceiling set below equilibrium.

Explanation:

just took test edge2020

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