The Market for Apples Is in Equilibrium at a Price

question 215

Multiple Choice

The market for apples is in equilibrium at a price of $0.50 per pound.If the government imposes a price floor in the market at a price of $0.40 per pound:

• A)quantity demanded will decrease.
• B)quantity supplied will increase.
• C)there will be a shortage of apples.
• D)the price floor will not affect the market price or output.

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