Refer to the Accompanying Figure,which Shows Both Short-Run and Long-Run

question 112

Multiple Choice

Refer to the accompanying figure,which shows both short-run and long-run demand and supply curves.If there is a $4 binding price ceiling imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

• A) There will be a shortage of 1,500,000 units.
• B) There will be a shortage of 800,000 units.
• C) There will not be a shortage; there will be a surplus.
• D) There will be a shortage of 2,000,000 units.
• E) There will be a shortage of 500,000 units.

Analyze market conditions and strategies in different scenarios involving goods with network externalities.

Understand the concept of separating and pooling equilibria in economic contexts.

Analyze the implications of information asymmetry in used car markets.

Apply the theory of adverse selection to various market scenarios.

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