Which of the following will tend to occur if price controls are imposed on a product?

Accounting profit is usually smaller than economic profit

a. True b. False Indicate whether the statement is true or false

In a move to free the economy from unnecessary regulation, Congress decides to remove sugar price supports. What would most likely happen to the number of producers of sugar?

a. It would decrease, because sugar prices would fall. b. It would decrease, because sugar prices would rise. c. It would increase, because sugar prices would fall. d. It would increase, because sugar prices would rise.