Which of the Following Is Most Likely to Result from the Imposition

question 103

Multiple Choice

Which of the following is most likely to result from the imposition of a price ceiling on the price charged by a monopolist?

• A)The monopolist will increase output after the imposition of the price ceiling.
• B)The monopolist will increase product quality in order to earn the same level of profit.
• C)The monopolist's profit will increase as a result of the price ceiling.
• D)The monopolist's demand curve will become horizontal for all levels of output.