If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread, then:

Question

Quizplus · Accepted Answer

When the government imposes a price ceiling that is below the equilibrium price, it creates a shortage because producers are not willing to supply as much bread at the lower price. This shortage occurs because the quantity demanded by consumers exceeds the quantity supplied by producers. Therefore, there will be a shortage of bread in the market.

If the Equilibrium Price of Bread Is $2 and the Government