In the graph, how many units are actually bought and sold at the ceiling of ₹4? Demand D (Qd = 100 − 10P) and supply S (Qs = 10P − 20) with equilibrium at ₹6. A price ceiling is set at ₹4: there, quantity supplied is 20 and quantity demanded is 60.

In the graph, how many units are actually…

In the graph, how many units are actually bought and sold at the ceiling of ₹4?

Question 46

MediumOriginal question

In the graph, how many units are actually bought and sold at the ceiling of ₹4?

Demand D (Qd = 100 − 10P) and supply S (Qs = 10P − 20) with equilibrium at ₹6. A price ceiling is set at ₹4: there, quantity supplied is 20 and quantity demanded is 60.

60 units, the quantity demandedCorrect answerYour answer40 unitsCorrect answerYour answer80 unitsCorrect answerYour answer20 units, the quantity suppliedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Buyers cannot buy more than sellers offer: the smaller of the two quantities is traded.
At ₹4 sellers offer only 20, so only 20 change hands; 40 units of demand go unmet.

Concept: Quantity traded under a ceiling
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrice ceiling and price floor

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

In the graph, how many units are actually bought and sold at the ceiling of ₹4?

Question 46

Explanation