Figure 2.2.2 -Refer to Figure 2.2.2 Above. If the Price of $2.25

question 109

Multiple Choice

Figure 2.2.2
-Refer to Figure 2.2.2 above. If the price of $2.25 is an artificial price imposed by the government, and the government is expected to remove it, what will happen in this market?

• A) There will a tendency for the price to be higher than the imposed price.
• B) There will a tendency for the new price to be lower than the imposed price.
• C) The new price would not be expected to by any different than the already imposed price.
• D) The new price will tend to fluctuate above and below the equilibrium price of $2.00.