If the government were to intervene and set the price of a dozen eggs above the market price,then we would expect,relative to the market outcome,
A)an increase in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
B)an increase in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.
C)a decrease in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
D)a decrease in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.

Question

Quizplus · Accepted Answer

Setting the price above the market price creates a surplus, as consumers buy less due to higher prices, while producers are willing to supply more.

If the Government Were to Intervene and Set the Price