The Market for Apples Is in Equilibrium at a Price

question 170

Essay

The market for apples is in equilibrium at a price of $0.50 per pound.If the government imposes a price ceiling in the market at a price of $0.40 per pound, then:
A.quantity demanded will decrease.
B.quantity supplied will increase.
C.there will be a shortage of the good.
D.the price ceiling will not affect the market price or output.

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Definitions:

Agricultural Machinery

Machines and equipment used in farming to aid in the production of crops and livestock, such as tractors and harvesters.

Financial Institutions

Organizations that provide financial services, like banks, insurance companies, and stock exchanges.

Roads and Bridges

Essential infrastructure elements that facilitate the movement of people and goods, significantly impacting economic productivity and quality of life.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targets of growth and development.