Suppose the government declares that a gallon of milk MUST cost $10. As a result of this new decree: a. neither the demand curve nor the supply curve for milk will shift. b. both the demand curve and the supply curve for milk will shift. c. the demand curve for milk will shift, but the supply curve will not. d. the supply curve for milk will shift, but the demand curve will not.

Suppose the government declares that a gallon of milk MUST cost $10. As a result of this new decree: a. neither the demand curve nor the supply curve for milk will shift. b. both the demand curve and the supply curve for milk will shift. c. the demand curve for milk will shift, but the supply curve will not. d. the supply curve for milk will shift, but the demand curve will not.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 5CQQ: An increase in the supply of a good will decrease the total revenue producers receive if a. the...

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