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PSYCHO15rus [73]
3 years ago
12

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market a

t $0.40 per pound: a. the price ceiling will not affect the market price or output. b. quantity supplied will increase. c. there will be a shortage of the good. d. quantity demanded will decrease.
Business
1 answer:
Anton [14]3 years ago
3 0

Answer:

c. there will be a shortage of the good.

Explanation:

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound: c. there will be a shortage of the good.

The correct answer is - c. there will be a shortage of the good.

Reason -

At the equilibrium price, the demand = supply

If the price is increased by the equilibrium price then, there are more customers(i.e. quantity demanded is increase ) and there is shortage of goods (i.e quantity supplied will decrease)

So, the correct option is - c. there will be a shortage of the good.

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