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Suppose That the Government Sets a Price Ceiling in the Market

question 81

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Suppose that the government sets a price ceiling in the market for potatoes at $0.75 per pound of potatoes.If the equilibrium price of potatoes is $1.10,the result of the price ceiling will be a _____________ of potatoes and ____________ exchanges will be made with the price ceiling than would be made in a free market.


Definitions:

Major Tools

Primary instruments or resources used to carry out a specific task or function.

Differentiates Product

The process or strategy of making a product stand out from its competitors in the market.

Publicity

An aspect of public relations consisting of any message about your company communicated through the mass media that you do not pay for.

Mass Media

Various forms of communication channels, such as television, radio, newspapers, and the internet, that reach a large audience simultaneously.

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