If the current market price of wheat in the United States is $6 per bushel and the federal government sets the maximum price of wheat at $4 per bushel,what happens to the market price and quantity of wheat in the U.S.wheat market?

Question

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If the federal government sets a maximum price below the current market price, it creates a price ceiling that prevents suppliers from charging the market price. At the $4 per bushel maximum price, suppliers have less incentive to produce wheat, leading to a decrease in supply. At the same time, consumers have an increased incentive to purchase wheat at the lower price, creating excess demand. The result is a decrease in quantity traded and a lower market price for wheat.

If the Current Market Price of Wheat in the United