Asked by shirley
If the Government fixes the price of this product at $2 explain what would happen in the market.
Draw a supply and demand curve for "this" product. Is the fixed price above or below the market equilibrium? Depending on how you answer, there should be a shortage or a suplus of "this" good.
Draw a supply and demand curve for "this" product. Is the fixed price above or below the market equilibrium? Depending on how you answer, there should be a shortage or a suplus of "this" good.
Answers
Answered by
zeenia
if prices are set below the equilibrium consumer surplus will increase
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