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Suppose the Equilibrium Price of Bread Is $2

Question 123

Multiple Choice

Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $1.50 per loaf, what will be the result?


A) The quantity of wheat supplied will increase.
B) The equilibrium price of wheat will fall and a shortage of wheat will be created.
C) There will be a shortage of bread.
D) The quantity of wheat demanded will decrease.

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