From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ... the National Guard has seized about 750 tons of food ... [President] Hugo Chàvez ordered the military to keep people from smuggling scarce items like milk ... He's also threatened to seize farms and milk plants ..."


These actions were the result of a price ceiling on food. Which zone (represented by a letter) on the graph reflects this policy, and what does it create?


A. Letter A; supply exceeds demand, resulting in a surplus


B. Letter B; supply exceeds demand, resulting in a shortage


C. Letter C; demand exceeds supply, resulting in a shortage


D. Letter D; demand exceeds supply, resulting in a surplus