What would happen in the market for bread if its demand increased but the price was NOT allowed to change?
A)There would be a surplus of bread.
B)There would be a shortage of bread.
C)The supply of bread would increase.
D)The supply of bread would decrease.

Question

Quizplus · Accepted Answer

When demand for bread increases but the price is not allowed to change, the quantity demanded will exceed the quantity supplied, resulting in a shortage of bread. This is because suppliers will not be able to produce enough bread to meet the increased demand without raising the price. As a result, consumers will not be able to purchase as much bread as they want, leading to a shortage.

What Would Happen in the Market for Bread If Its