Asked by
Nitesh Patel
on Nov 04, 2024
Verified
Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on mustard producers, prohibiting them from raising the price of mustard. This will cause
A) an excess demand for mustard.
B) an excess supply of mustard.
C) an increase in the demand for mustard.
D) a decrease in the supply of mustard.
Price Restrictions
Regulations or limits placed on the price level for goods and services, often by a government to control inflation or protect consumers.
Excess Demand
A situation in an economic market where the quantity demanded of a good or service exceeds the quantity supplied at the current price.
- Examine the repercussions of actions taken by markets and governments on the balance of market equilibrium.
- Examine the impact of external disturbances, such as weather anomalies and product recalls, on the supply and demand in markets.
Verified Answer
TJ
Learning Objectives
- Examine the repercussions of actions taken by markets and governments on the balance of market equilibrium.
- Examine the impact of external disturbances, such as weather anomalies and product recalls, on the supply and demand in markets.