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

question 11

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.

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Definitions:

RPM

Revolutions per minute, a unit of rotational speed or angular velocity.

Multispeed Fan Motors

Motors designed to operate at various speeds to control the airflow rate for different cooling or ventilation requirements.

Run Winding

The winding of a split-phase motor that remains energized during operation.

Resistors

Electronic components designed to introduce a specific amount of resistance to an electrical current, used in circuits to manage current flow.