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A Gallon of Milk Costs $4 in Bonland

Question 160

Multiple Choice

A gallon of milk costs $4 in Bonland.If the government fixes the price at $3.50,________.


A) the quantity demanded of milk will fall
B) the quantity of milk supplied will increase
C) a shortage of milk will occur in the market
D) there will be an excess supply of milk in the market

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