Figure: Price Ceiling in a Generic Market Refer to the Figure

question 37

Multiple Choice

Figure: Price Ceiling in a Generic Market Refer to the figure. If the government imposes a price ceiling at the price of $4.00, the result would be a:

• A) surplus of 40 units.
• B) shortage of 40 units
• C) surplus of 20 units.
• D) shortage of 20 units.

---

Definitions:

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that mature in less than one year.

Capital Markets

Financial markets where debt or equity securities are traded, providing a mechanism for companies to raise long-term funds and investors to purchase securities.

Money Market Securities

Short-term financial instruments typically with high liquidity and minimal risk.