Exhibit 4-10 Supply and demand data for apricots
Bushels demandedper month
Price perbushel
Bushels suppliedper month
50
$5
80
55
4
75
60
3
70
65
2
65
70
1
55
Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots.
B. Buyers would not want to purchase all of the apricots that are supplied.
C. There would be a surplus of apricots.
D. Farmers would reduce the number of acres allocated to the growing of apricots.
Answer: A
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