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Suppose the market supply and market demand for a product are given by P = 2 + Qs and P = 12 - Qd, respectively
Suppose the market supply and market demand for a product are given by P = 2 + Qs and P = 12 - Qd, respectively (where P is price (in dollars), Qs is quantity supplied and Qd is quantity demanded). What will be the effect on the market if the government sets a price ceiling of $5?
A.It creates a surplus of 3 units
B.It creates a shortage of 3 units
C.It creates a surplus of 4 units
D.It creates a shortage of 4 units
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