1.1.

a. Just to review: Back in Chapter 5, we illustrated price ceilings with a horizontal line below the equilibrium price. Did price ceilings create surpluses or shortages?

b. The horizontal line in Figure 19.1 doesn't represent a surplus or a shortage. What does it represent?

c. Figure 19.1 considers the case of a coun try that can buy as many semiconductors as it wants at the same world price. Why do people in this country only buy Q ; ee trade units? Why don't they buy more of this inexpensive product?