The government decides to impose a price ceiling on a good because it thinks the market-determined price is too high. If it imposes the price ceiling above the equilibrium price: consumers will purchase less of the good after the price ceiling is imposed. neither producers nor consumers will change their behavior. O producers will respond to the higher price and therefore offer fewer units for sale O consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price.

The government decides to impose a price ceiling on a good because it thinks the market-determined price is too high. If it imposes the price ceiling above the equilibrium price: consumers will purchase less of the good after the price ceiling is imposed. neither producers nor consumers will change their behavior. O producers will respond to the higher price and therefore offer fewer units for sale O consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 24P

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