If the government set a price ceiling of 25 cents for a loaf of bread,the most likely consequence would be

A) a surplus of bread.
B) no one would go hungry.
C) most Americans would put on weight.
D) a shortage of bread.

Question

Camille Overbay · Accepted Answer

Final Answer : D, Explanation :  Setting a price ceiling below the market equilibrium price creates a shortage of the good. In this case, demand for bread would increase as consumers would want to buy bread at the lower price, but there would be less incentive for producers to supply bread at this lower price. Therefore, there would be a shortage of bread.

If the government set a price ceiling of 25 cents for a loaf of bread,the most likely consequence would be

A) a surplus of bread.
B) no one would go hungry.
C) most Americans would put on weight.
D) a shortage of bread.

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Learning Objectives

Related questions

If the government set a price ceiling of 25 cents for a loaf of bread,the most likely consequence would beA) a surplus of bread.B) no one would go hungry.C) most Americans would put on weight.D) a shortage of bread.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the government set a price ceiling of 25 cents for a loaf of bread,the most likely consequence would be

A) a surplus of bread.
B) no one would go hungry.
C) most Americans would put on weight.
D) a shortage of bread.