The market for apples is in equilibrium at a price of $0.50 per pound.If the government imposes a price ceiling in the market at a price of $0.40 per pound, then:
A.quantity demanded will decrease.
B.quantity supplied will increase.
C.there will be a shortage of the good.
D.the price ceiling will not affect the market price or output.

Question

Quizplus · Accepted Answer

The Answer of The market for apples is in equilibrium at a price of $0.50 per pound.If the government imposes a price ceiling in the market at a price of $0.40 per pound, then:
A.quantity demanded will decrease.
B.quantity supplied will increase.
C.there will be a shortage of the good.
D.the price ceiling will not affect the market price or output.

The Market for Apples Is in Equilibrium at a Price