question after groups lobbying for environmental protection publish an article about the benefits of…

question after groups lobbying for environmental protection publish an article about the benefits of gasoline powered cars, the government places a price ceiling on gasoline powered cars to encourage consumers to buy them. calculate the shortage caused by the price ceiling.

question after groups lobbying for environmental protection publish an article about the benefits of gasoline powered cars, the government places a price ceiling on gasoline powered cars to encourage consumers to buy them. calculate the shortage caused by the price ceiling.

Answer

Explanation:

Step1: Identify quantity supplied and demanded

At the price - ceiling of $25,000, the quantity supplied is 12,000 (from the supply curve) and the quantity demanded is 28,000 (from the demand curve).

Step2: Calculate the shortage

The shortage is calculated as the quantity demanded minus the quantity supplied. So, Shortage = Quantity Demanded - Quantity Supplied. Shortage=$28000 - 12000$

Answer:

16,000