Solved

When the Price of a Good Is Legally Set Below

Question 69

Multiple Choice

When the price of a good is legally set below the equilibrium level, a shortage often results. This shortage


A) is a temporary failure of the market mechanism.
B) is the result of a shift in demand.
C) is the result of a shift in supply.
D) occurs because the price ceiling prevents the market mechanism from establishing an equilibrium price.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions