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A supply and demand graph, showing quantity on the x axis and price is on y axis. Supply line rises up and to the right
A supply and demand graph, showing quantity on the x axis and price is on y axis. Supply line rises up and to the right from 0, From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ... the National Guard has seized about 750 tons of food ... [President] Hugo Chvezordered the military to keep people from smuggling scarce items like milk ... He's also threatened to seize farms and milk plants ..." These actions were the result of a price ceiling on food. Which zone (represented by a letter) on the graph reflects this policy, and what does it create? (5 points) Letter A; supply exceeds demand, resulting in a surplus Letter B; supply exceeds demand, resulting in a shortage Letter C; demand exceeds supply, resulting in a shortage Letter D; demand exceeds supply, resulting in a surplus
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