if-a-government-sets-a-price-ceiling-on-bread-at-2-while-the-equilibrium-price-i

Question

If a government sets a price ceiling on bread at $$2, while the equilibrium price is 3$$, what steps would you take to calculate the resulting shortage?

Accepted Answer

Calculate the difference between quantity demanded and quantity supplied at $2.

Answer

Calculate the difference between the equilibrium quantity and the quantity supplied at $2.

Answer

Calculate the difference between quantity demanded and quantity supplied at $3.

Answer

Calculate the difference between the equilibrium quantity and the quantity demanded at $2.

If a government sets a price ceiling on bread at \$2, while the equilibrium price is \$3, what steps would you take to calculate the resulting shortage?