Macroeconomics 11th Edition by Stephen Slavin

Exercise 28

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
If the government set a price ceiling of 25 cents for a loaf of bread, the most likely consequence would be_____.
a) a surplus of bread
b) no one would go hungry
c) most Americans would put on weight
d) a shortage of bread