Suppose That the Jamaican Government Sets Coffee Prices at $1

Multiple Choice

Suppose that the Jamaican government sets coffee prices at $1 per kilogram when the market price is $10 per kilogram.The government's actions will:

A) improve efficiency since the low prices will force producers to find cheaper production methods.
B) result in coffee surpluses,even in a coffee-rich country.
C) cause coffee shortages,even in a coffee-rich country.
D) improve equality between rich and poor since the poor can now afford coffee.