Narrbegin Exhibit 4 Narrend
-In Exhibit 4

Narrbegin Exhibit 4.5 Supply and demand data for cars
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Cars demanded } \\\text { per manth }\end{array} & \begin{array} { c } \text { Price per } \\\text { car (\$) }\end{array} & \begin{array} { c } \text { Cars supplied } \\\text { per manth }\end{array} \\\hline 50 & 50 \text { 000 } & \text { 80 } \\\hline 55 & 40 \text { 000 } & 75 \\\hline 60 & 30000 & 70 \\\hline 65 & 20000 & 65 \\\hline 70 & 10000 & 55 \\\hline\end{array}$$ Narrend
-In Exhibit 4.5, assume that the government sets a price ceiling of $10 000 for cars. What effect will this price change have?

A) The quality of cars will improve.
B) The quantity of cars demanded will fall.
C) A black market for cars is likely to develop.
D) The price of cars will rise.

Correct Answer:

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