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Assume a Price Ceiling Is Imposed at the Current Equilibrium

Question 23

Multiple Choice

Assume a price ceiling is imposed at the current equilibrium price in the market for wheat. If the supply of wheat then decreases as a result of bad weather, what will result?


A) The quantity of wheat supplied will increase.
B) The quantity of wheat traded will remain the same.
C) A surplus of wheat will be created.
D) A shortage of wheat will be created.

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