Refer to the Graph Shown

question 198

Multiple Choice

Refer to the graph shown. Which statement best characterizes the difference between the effect of a price ceiling in the short run and the long run?

• A)A price ceiling of P₀ will create a shortage of (Q₄ − Q₀)in the short run and the long run.
• B)A price ceiling of P₂ will create a shortage of (Q₃ − Q₀)in the short run and a smaller shortage of (Q₃ − Q₁)in the long run.
• C)A price ceiling of P₂ will create a shortage of (Q₃ − Q₁)in the short run, but a greater shortage of (Q₃ − Q₀)in the long run.
• D)A price ceiling of P₀ will create a shortage of (Q₃ − Q₀)in the short run and the long run.

---

Definitions:

Unambiguous

Clear and precise with only one possible interpretation or meaning.

Four Corners

The term usually relates to the geographical region in the southwestern United States where the states of Arizona, New Mexico, Utah, and Colorado meet at a single point. In a legal document context, it refers to the principle that the interpretation of the document is derived from what is within its "four corners," meaning its explicit content, without reference to external factors.

Void Contract

A legal agreement that is invalid or unenforceable from the outset.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential for abuse and harm.