The Table Given Below Reports the Quantity Demanded and Supplied

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market. Table 3.5


-Refer to Table 3.5.
If government imposes a price ceiling of $2:

A) the price will be above equilibrium.
B) the price will fall to $1 because producers will be forced to incur losses.
C) demand will increase.
D) a surplus will result equal to 20 units.
E) a shortage will result equal to 20 units.

Correct Answer:

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