If the Equilibrium Price of Bread Is $2 and the Government

question 190

Multiple Choice

If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread, then:

• A) more bread will be produced.
• B) there will be a shortage of bread.
• C) the demand for bread will decrease.
• D) producers will charge $0.50 for bread.
• E) $0.50 in tax revenue will be paid for each unit of bread.

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Definitions:

GDP

The total value of all end products and services created within a country's borders during a certain time frame defines Gross Domestic Product.

Production

The process of creating goods or services by combining labor, capital, and raw materials in order to meet consumer demand.

Rental Housing Services

Rental Housing Services refer to the provision of accommodation for a payment made by tenants to landlords under agreed terms.

Owner-Occupied Housing

Residential properties that are occupied by the owner of the property, differentiating these from rental properties or investment properties.