a local farmers market introduces a new line of organic vegetables that quickly becomes popular among health…

a local farmers market introduces a new line of organic vegetables that quickly becomes popular among health - conscious consumers. the sudden popularity leads to an increase in the demand for these organic vegetables. the graph shows the supply and initial and new demand for the organic vegetables. if a price ceiling is imposed at $30 in a market with the new demand curve, what will be the effect on the market? the price ceiling will lead to a shortage. the price ceiling will lead to a surplus. the price ceiling will cause prices to rise above $30. the price ceiling will have no effect on the market.

a local farmers market introduces a new line of organic vegetables that quickly becomes popular among health - conscious consumers. the sudden popularity leads to an increase in the demand for these organic vegetables. the graph shows the supply and initial and new demand for the organic vegetables. if a price ceiling is imposed at $30 in a market with the new demand curve, what will be the effect on the market? the price ceiling will lead to a shortage. the price ceiling will lead to a surplus. the price ceiling will cause prices to rise above $30. the price ceiling will have no effect on the market.

Answer

Brief Explanations:

A price - ceiling is a legal maximum price. In the new equilibrium of the organic vegetables market (where new demand has increased), the equilibrium price is above the price ceiling of $30. Since the price cannot rise above the ceiling, quantity demanded will exceed quantity supplied, leading to a shortage.

Answer:

The price ceiling will lead to a shortage.