Question

Suppose government imposes a ceiling price of $4 on hamburger. This results in

a surplus of 400 tons of hamburger
a surplus of 200 tons of hamburger
a shortage of hamburger
consumers purchasing 700 tons of hamburger at a price of $3

Answer 1

a shortage of hamburger

Step-by-step explanation:

The price is adjusted by demand and supply.

Once the demand is more/ higher than supply, the price will increase and vice versa.

However to avoid instability, especially as the price of main consuming goods increase too much, the government may imposes a ceiling price. In this case, government imposes a ceiling price of $4 on hamburger.