-The above figure shows a graph of the market for pizzas in a large town.As a result of concern over the affordability of pizza,the government restricts sellers from charging a price over $7.As a result,the quantity of pizzas consumed will
A) increase.
B) decrease.
C) remain unchanged.
D) be indeterminable.

Question

-The above figure shows a graph of the market for pizzas in a large town.As a result of concern over the affordability of pizza,the government restricts sellers from charging a price over $7.As a result,the quantity of pizzas consumed will
A) increase. 
B) decrease. 
C) remain unchanged. 
D) be indeterminable.

Quizplus · Accepted Answer

When the government sets a maximum price (price ceiling) below the equilibrium price, it typically leads to a decrease in the quantity supplied as sellers are not willing to supply as much at the lower price, leading to a shortage and thus a decrease in the quantity consumed.

-The Above Figure Shows a Graph of the Market for Pizzas