If the government imposes a price control on the price of wine so that no bottle can be sold for more than $15, you would expect:

Question

Quizplus · Accepted Answer

When the government imposes a price control on the price of wine, the maximum price that wine producers can charge is limited. As a result, producers may not find it profitable to produce wine at the new price ceiling, leading to a decrease in the quantity supplied in the market. This decrease in quantity supplied may be due to the increased costs of producing the wine or reduced incentives for wine producers. Therefore, the correct answer is B.

If the Government Imposes a Price Control on the Price