If the equilibrium price of bread is 2 and the government imposes ...

[cookcarl]

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.

[jgranad15]

Answer to Question 1

b

Answer to Question 2

e

[cookcarl]

Correct answers!

[jgranad15]

Great! Please up vote