Suppose a Market Is in Equilibrium and Then a Price

question 206

Multiple Choice

Suppose a market is in equilibrium and then a price ceiling is established below the equilibrium price.Which of the following will happen?

• A)quantity demanded will decrease
• B)a surplus will develop
• C)a shortage will develop
• D)the quantity sold will rise
• E)the market will remain in equilibrium

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Definitions:

Aaron Douglas

A prominent African American painter and graphic artist who played a key role in the Harlem Renaissance.

Jacob Lawrence

An African-American painter known for his portrayal of African-American life and history through colorful, narrative paintings.

American Regionalist

A 20th-century art movement in the United States that emphasized rural American themes and landscapes, showcasing everyday life outside the urban centers.

Midwest

A region of the United States located in the north-central part of the country, known for its agriculture, industry, and as the "American Heartland."