If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread,

a. more bread will be produced to meet the increased demand
b. there will be an excess demand for bread
c. the demand for bread will decrease because suppliers will reduce their supply
d. an excess supply of bread will emerge
e. a $0.50 tax must be imposed to bring equilibrium price into accord with the price ceiling


B

Economics

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