7. In the market depicted to the right we consider the implications of imposing an effective price ceiling at a price of 5. By "effective" we mean a price ceiling that is appropriately supported by government actions, so that 5 is the actual price found in the market. If we examine this graph, we see that at a price of 5, the desired quantity supplied is 4 units while the desired quantity demanded is 7 units; resulting in a shortage of 3 units.

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