Answer to Question #83687 in Microeconomics for amanda

Question #83687
without a price ceiling the equilibrium price was 10. the government implements a price ceiling of 8?
1
Expert's answer
2018-12-10T15:12:10-0500

There will be excess demand and supply shortage for the product. Consumers will demand more of the product because it is cheaper while the producers will be reluctant to produce at the reduced price.

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