Figure 3.6 -Assume That the Market Described by the Demand and Supply

Multiple Choice

Figure 3.6

-Assume that the market described by the demand and supply curves in Figure 3.6 is originally in equilibrium. What is the most likely consequence of a government-imposed price ceiling at $10 per unit?

A) Supply will decrease.
B) Demand will increase.
C) Quantity supplied will decrease.
D) There will be a surplus of the good.
E) There will be no consequence at all.