Refer to the graph shown. Which statement best characterizes the difference between the effect of a price ceiling in the short run and the long run?
A. A price ceiling of P0 will create a shortage of (Q3 ? Q0) in the short run and the long run.
B. A price ceiling of P0 will create a shortage of (Q4 ? Q0) in the short run and the long run.
C. A price ceiling of P2 will create a shortage of (Q3 ? Q1) in the short run, but a greater shortage of (Q3 ? Q0) in the long run.
D. A price ceiling of P2 will create a shortage of (Q3 ? Q0) in the short run and a smaller shortage of (Q3 ? Q1) in the long run.
Answer: C
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