Quantitative Analysis of Price Ceilings and Price Floors: Finding Points

5. Consumer and Producer Surplus; Price Ceilings and Floors / Quantitative Analysis of Price Ceilings and Price Floors: Finding Points / Problem 7

Problem 7

If the equilibrium price is \$200 and a price ceiling is set at \$150, what happens to the quantity supplied?

It becomes zero.

It decreases.

It increases.

It remains the same.