If the equilibrium price of bread is R20 and the government imposes a R15.00 price ceiling on the price of bread,

Question

Quizplus · Accepted Answer

The government-imposed price ceiling of R15.00 is lower than the equilibrium price of R20. This means that suppliers will not be willing to supply the same amount of bread at a lower price, while consumers will demand more bread at the lower price. As a result, there will be excess demand or shortage of bread in the market.

If the Equilibrium Price of Bread Is R20 and the Government