If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50.
B. The market will be in equilibrium at a price of $2.00.
C. There will be a shortage of coffee.
D. Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.
Answer: C
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