Assume a Price Ceiling Is Imposed at the Current Equilibrium

question 152

Multiple Choice

Assume a price ceiling is imposed at the current equilibrium price in the market for wheat. If the supply of wheat then decreases as a result of bad weather,

• A)​a surplus of wheat will be created.
• B)​a shortage of wheat will be created.
• C)​the quantity of wheat traded remains the same.
• D)​the quantity of wheat supplied will increase.

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Definitions:

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A business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing CSR, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

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The obligations or standards that are legally enforced, which an individual or organization must follow to comply with the law.

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An attitude characterized by skepticism, negativity, and a general distrust of the motives of others.