Suppose the equilibrium price of bananas is $5 and a price ceiling of $7 is implemented.This will result in:

Name: Suppose the equilibrium price of bananas is $5 and a price ceiling of $7 is implemented.This will result in:
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Question

Quizplus · Accepted Answer

Since the price ceiling of $7 is above the equilibrium price of $5, it does not restrict the market from reaching its equilibrium. Therefore, there will be no change in the quantity of bananas sold as the market can still naturally adjust to the equilibrium price.

Suppose the Equilibrium Price of Bananas Is $5 and a Price