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When a Price Ceiling Below the Equilibrium Price Is Imposed

Question 233

Multiple Choice

When a price ceiling below the equilibrium price is imposed on a good,production of the good


A) increases.
B) decreases.
C) does not change.
D) is frozen at the pre-ceiling level.
E) either increases or decreases depending on whether the supply of the good increases or decreases when the price ceiling is imposed.

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