When a Price Ceiling Below the Equilibrium Price Is Imposed

question 233

Multiple Choice

When a price ceiling below the equilibrium price is imposed on a good,production of the good

• A) increases.
• B) decreases.
• C) does not change.
• D) is frozen at the pre-ceiling level.
• E) either increases or decreases depending on whether the supply of the good increases or decreases when the price ceiling is imposed.