In some recent past years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. Chinese authorities were concerned that escalating prices would cause inflation and be followed by civil unrest.
-If the Chinese government sets a price ceiling below the equilibrium price, the result will be to
A) increase total surplus.
B) create deadweight loss.
C) increase surplus and create deadweight loss.
D) eliminate deadweight loss.
Correct Answer:
Verified
Q30: A rent ceiling results in a shortage.
Q31: One common effect of rent ceilings in
Q32: Q33: With rent controls, which of the following Q34: Which of the following is a result Q36: A rent ceiling creates a shortage. As Q37: In some recent past years, prices of Q38: A rent ceiling creates a shortage. As Q39: The stricter the enforcement of a price Q40: A rent ceiling set below the equilibrium![]()
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