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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 Chvez ordered 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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