Answer:
Option a is the correct answer.
So, at a price ceiling of $11, 50 fewer units will be exchanged in the market.
Step-by-step explanation:
The equilibrium point is a point where the quantity demanded of a good at a certain price is equal to the quantity supplied of the good at that price. The equilibrium point of Good X is at $13 per unit as at this price the quantity demanded equals quantity supplied.
Equilibrium price = $13
Equilibrium Quantity = 150 units
A price ceiling is a governmental control on the maximum price that can be charged for a product. The government uses this tool to protect consumers from high prices.
If the government imposes a price ceiling at $11, this means that the maximum price that can be charged for the product is $11. In case the price ceiling is less than the equilibrium price, it creates a shortage in the market and vice versa.
Thus, at a price ceiling of $11, the quantity demanded for the product will be 200 units while only 100 units of the product will be supplied. SO, the market will only satisfy a demand of 100 units.
The difference between the exchange at the equilibrium price and at price ceiling is,
Difference = 150 units - 100 units
Difference = 50 units
So, at a price ceiling of $11, 50 fewer units will be exchanged in the market.