If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread, then:
a. more bread will be produced.
b. there will be a shortage of bread.
c. the demand for bread will decrease.
d. producers will charge $0.50 for bread.
e. $0.50 in tax revenue will be paid for each unit of bread.
b
You might also like to view...
In general, it is easier to negotiate the purchase of noncontiguous parcels of land than it is to negotiate the purchase of similar land parcels that are contiguous
Indicate whether the statement is true or false
If the aggregate price level adjusts slowly over time, then an expansionary monetary policy lowers
A) only the short-term nominal interest rate. B) only the short-term real interest rate. C) both the short-term nominal and real interest rates. D) the short-term nominal, the short-term real, and the long-term real interest rates.