-Refer to Table 3

question 72

Multiple Choice

-Refer to Table 3.3 to answer this question.Suppose that the government introduces an effective price ceiling which is $0.20 different from the equilibrium price and at the same time supply increases by 12 units.What will be the result?

• A)Price will be $2.30 and quantity traded will be 164.
• B)Price will be $2.30 and quantity traded will be 152.
• C)Price will be $1.90 and quantity traded will be 156.
• D)Price will be $1.90 and quantity sold will be 144.
• E)Equilibrium price and quantity will be $1.90 and 156.

---

Definitions:

Public Park

A designated area of natural or landscaped space set aside for public enjoyment and recreation.

Socially Optimum

A condition or state in which resources are allocated in the most efficient manner from the perspective of the society overall, maximizing social welfare.

Public Park

An area of land, usually owned and maintained by government agencies, designated for public use and enjoyment, often featuring natural or landscaped spaces.

Pigouvian Subsidy

A subsidy on goods or services that have positive externalities, aimed at encouraging activities that are beneficial for society.