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Suppose the Equilibrium Price of Bread Is $2

Question 60

Multiple Choice

Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $2.50 per loaf, what will be the result?


A) The price of wheat will rise and a shortage will be created.
B) The quantity supplied of wheat will increase.
C) There will be no change in the quantity of bread demanded or supplied.
D) There will be a shortage of bread.

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