contestada

Assume that the current market equilibrium price for milk is $2.80 per gallon and that 5 million gallons are sold per day. If the government sets a price ceiling of $2.00 per gallon, which of the following is mie?

Respuesta :

Tundexi

The supply of milk decreases because of the price ceiling.

Basically, the price ceiling refers to the maximum legal price that can be charged by the seller as determined by the government.

  • The equilibrium market price of the milk is $2.80
  • The price ceiling is set below the equilibrium market price of milk which is $2.

The price ceiling will lead to decrease in the supply of milk.

Therefore, the Option B is correct because the supply of milk decreases because of the price ceiling.

Missing options includes "(A) The demand for milk will increase. (B) The supply of milk will decrease. (C) There will be an excess supply of milk in the market (D) More than 5 million gallons of milk will be sold. (E) Less than 5 million gallons of milk will be sold."

Read more about price ceiling

brainly.com/question/2142981

Otras preguntas