Suppose the government imposes a price ceiling below the equilibrium price of a given good. All of the following are most likely to occur except Oa. Some buyers and sellers will be willing to risk breaking the law in order to exchange the good at a price above the equilibrium price since there would be a shortage of the good at the price oniling O bA surplus will occur in that particular market Some other rationing device will emerge to allocate the good among buyers Od Beute force will be used to allocate the good among buyers.

Suppose the government imposes a price ceiling below the equilibrium price of a given good. All of the following are most likely to occur except Oa. Some buyers and sellers will be willing to risk breaking the law in order to exchange the good at a price above the equilibrium price since there would be a shortage of the good at the price oniling O bA surplus will occur in that particular market Some other rationing device will emerge to allocate the good among buyers Od Beute force will be used to allocate the good among buyers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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