Multiple Choice
Suppose a market is in equilibrium, and then a price ceiling is imposed at the equilibrium price. Which of the following will happen?
A) Quantity demanded will decrease.
B) An excess supply will develop at the price ceiling level.
C) An excess demand will develop at the old equilibrium price level.
D) There will be no change in price or quantity bought and sold.
E) The market will no longer be in equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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