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Author Question: If the equilibrium price of bread is 2 and the government imposes a 1.50 price ceiling on the price ... (Read 165 times)

cookcarl

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on: Jun 30, 2018
If the equilibrium price of bread is 2 and the government imposes a 1.50 price ceiling on the price of bread, then:
 a. more bread will be produced.
  b. there will be a shortage of bread.
  c. the demand for bread will decrease.
  d. producers will charge 0.50 for bread.
  e. 0.50 in tax revenue will be paid for each unit of bread.

Question 2

When the government imposes a price ceiling on a good whose price is too high,
 a. surpluses are created.
  b. supply will increase to meet the demand.
  c. rationing is not necessary.
  d. quantity demanded of the good will fall.
  e. chronic excess demand occurs.


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jgranad15

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

e


cookcarl

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Reply #2 on: Jun 30, 2018
Correct answers!


jgranad15

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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