Each year, the United States exports about 50 percent of its wheat crop

A shortage occurs in a market when:

A) supply exceeds demand. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal utility of consumption is negligible.

The price ceiling depicted in the above figure results in

A) consumer surplus increasing from $30 thousand to $34.5 thousand. B) producer surplus decreasing from $24 thousand to $6 thousand. C) a deadweight loss of $16 thousand. D) Both answers A and B are correct.