Question 1
Price Ceilings and their Consequences
The table shows the quantity of bread that is demanded and supplied at various prices.
Price | Quantity Demanded | Quantity Supplied |
1.50 | 540 | 190 |
2.50 | 450 | 275 |
3.50 | 360 | 360 |
4.50 | 270 | 445 |
The government sets a price ceiling at $2.50. The price ceiling causes a ________ (shortage/surplus) of ________.
◦ shortage, 175
◦ surplus, 350
◦ shortage, 350
◦ surplus, 175
Question 2
The table shows the quantity of office space that is demanded and supplied at various prices.
Price | Quantity Demanded | Quantity Supplied |
1000 | 235.714286 | 172.222222 |
1250 | 200 | 200 |
1500 | 164.285714 | 227.777778 |
1750 | 128.571429 | 255.555556 |
The government sets a price ceiling at $1500. The price causes a ________ (shortage/surplus) of ________.
◦ shortage, 63.4920635
◦ surplus, 63.4920635
◦ shortage, 0
◦ surplus, 164.285714