Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the surplus?
A)An increase in demand.
B)A decrease in demand.
C)An increase in supply.
D)None of the above; there is no surplus.

Question

Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the surplus?
A)​An increase in demand.
B)​A decrease in demand.
C)​An increase in supply.
D)​None of the above; there is no surplus.

Quizplus · Accepted Answer

The Answer of Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the surplus?
A)​An increase in demand.
B)​A decrease in demand.
C)​An increase in supply.
D)​None of the above; there is no surplus.

Assume There Is a Price Ceiling Imposed on a Good