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Suppose That the Government Sets a Maximum Price for Insulin

Question 52

Multiple Choice

Suppose that the government sets a maximum price for insulin below the equilibrium price:


A) there will be an efficient level of insulin produced.
B) there will be excess supply of insulin.
C) total surplus will be lower than it would be at the market equilibrium price.
D) total surplus will be greater than it would be at the market equilibrium price.

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