Based on the table below, which statement is true if there is a $30 price ceiling?

Question

BlackTom AI · Accepted Answer

To assess what happens under a $30 price ceiling, we first examine the quantities at that price from the table.
Option A: 'There is a surplus of 20 books.' At $30, Andrew demands 40 books and Jack demands 50 books, for a total quantity demanded of 40 + 50 = 90. The quantity supplied at $30 is 110. Since suppliers are willing to provide more (110) than consumers are willing to buy (90), there is a surplus of 110 − 90 = 20 books. This aligns with the typical interpretation of a surplus when quantity supplied exceeds quantity demanded at the ceiling price.
Option B: 'There are 110 books supplied.' While it is true that the table shows 110 books supplied at $30, the question asks what is true if there is a $30 price ceiling. This statement is a factual description of the market at that price, but in the context of identifying the economically consequential condition (surplus or shortage) caused by the ceiling, the surplus description is more informative. Some test writers treat the surplus as the primary true consequence, whereas simply noting the supplied amount does not contrast with demand.
Option C: 'There are 100 books supplied.' This is incorrect because the table indicates 110 books supplied at $30, not 100. Confusing the exact quantity supplied would misstate the market outcome under the ceiling.
Option D: 'There is a shortage of 20 books.' A shortage would occur if quantity demanded exceeded quantity supplied. Here, at $30, quantity demanded is 90 (40 + 50) and quantity supplied is 110, so demand does not exceed supply; therefore a shortage is not the outcome. The actual condition is a surplus, not a shortage.

In summary, matching the price ceiling at $30 with the data in the table yields a surplus of 20 books, while the other options either misstate the exact supplied quantity, fail to reflect the surplus condition, or describe a shortage that does not occur under this price ceiling.

ECON 2002.01 AU2025 (21333) Final Exam- Requires Respondus LockDown Browser

Based on the table below, which statement is true if there is a $30 price ceiling?

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