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What Situation Best Explains Why the Government Would Impose Price

Question 132

Multiple Choice

What situation best explains why the government would impose price ceilings?


A) The government wants to help producers that have built up large amounts of debt.
B) There are too many producers flooding the market with the good.
C) Income substantially increases, which shifts the demand curve to the left.
D) A series of substantial crop failures shift the supply curve of food to the left.
E) Technological changes occur, shifting the supply curve to the right.

Correct Answer:

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