Setting the maximum legal price above the market price will cause: A. the market to reach...
Setting the maximum legal price above the market price will cause:
A. the market to reach an equilibrium outcome.
B. a shortage to develop.
C. quantity supplied to exceed quantity demanded.
D. market inefficiencies.
Homework Answers
Answer
Option A
A. the market to reach an equilibrium outcome.
A maximum legal price means the producer can not charge above it but if the price is above the market price then the producer will charge price equal to the equilibrium price and the market reach equilibrium.
Add Answer to:
Setting the maximum legal price above the market price
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The following graph shows a bond market in equilibrium at a bond
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Use the following graph input tool to answer the questions that
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Use the following graph input tool to answer the questions that
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