The demand for pizza is represented by P^D=10-(Q^D/4), and the supply of pizza is represented by P^S=4+(Q^S/2), with Q in thousands and P in dollars. The market for pizza is perfectly competitive.
Suppose a price ceiling was set $2 below the equilibrium price. What would be the result?
A. There would be a surplus of 12000.
B. Quantity demanded would equal 4000.
C. This is a nonbinding price ceiling.
D. There would be a shortage of 12000.