Suppose the Equilibrium Price of Bread Is $2

Multiple Choice

Suppose the equilibrium price of bread is $2.00 per loaf.If the government sets a price ceiling of $1.50 per loaf:

A) the equilibrium price of wheat will fall and a shortage of wheat will be created.
B) the quantity of wheat supplied will increase.
C) the quantity of wheat demanded will decrease.
D) there will be a shortage of bread.
E) there will be a surplus of bread.