Changes

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)  

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)  

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must subtract 200 units from 800 units to find the number of units that applies to the graph. The result is the 600 units, the correct answer.

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must find the ditance between the two numbers by subtracting 200 units from 800 units to find the shortage of units that applies to the graph. The result is the 600 units, the correct answer.