Suppose the Equilibrium Price of Oranges Is $0

question 35

Multiple Choice

Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:

• A) lower equilibrium price for oranges as the supply curve for oranges shifts to the right.
• B) higher equilibrium price for oranges as the demand curve for oranges shifts to the right.
• C) shortage of oranges as the price ceiling keeps the market from reaching equilibrium.
• D) surplus of oranges as the price ceiling keeps the market from reaching equilibrium.

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Definitions:

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, in contrast to a controlled or regulated market system.

Media Products

Content produced and distributed by media outlets, including news, entertainment, information, and educational materials.

State Monopoly

A market structure where the production and distribution of a particular product or service is controlled exclusively by the government.

Broadcasting Corporation

An organization that produces and distributes content via radio or television channels to a wide audience.