Refer to the accompanying figure.If there is a $700 government-imposed price antigouging law imposed on generators,how will the market be affected in the short run?
A) There will be a shortage of 200 generators.
B) There will be a shortage of 100 generators.
C) The government will intervene and order a surplus of 100 generators.
D) Price gougers will enter the market and provide a surplus of 100 generators.
E) No changes will occur in the market,since anti-price-gouging laws are now in effect.

Question

Refer to the accompanying figure.If there is a $700 government-imposed price antigouging law imposed on generators,how will the market be affected in the short run? 
A) There will be a shortage of 200 generators. 
B) There will be a shortage of 100 generators. 
C) The government will intervene and order a surplus of 100 generators. 
D) Price gougers will enter the market and provide a surplus of 100 generators. 
E) No changes will occur in the market,since anti-price-gouging laws are now in effect.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying figure.If there is a $700 government-imposed price antigouging law imposed on generators,how will the market be affected in the short run? 
A) There will be a shortage of 200 generators. 
B) There will be a shortage of 100 generators. 
C) The government will intervene and order a surplus of 100 generators. 
D) Price gougers will enter the market and provide a surplus of 100 generators. 
E) No changes will occur in the market,since anti-price-gouging laws are now in effect.

Refer to the Accompanying Figure