Suppose the equilibrium price of gallon of milk

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1. Suppose the equilibrium price of a gallon of milk is? $4. If the government imposes a price floor of? $5 per gallon of? milk, the

A. supply increases.

B. quantity supplied of milk falls short of the quantity demanded.

C. price of milk remains? $4 per gallon.

D. demand decreases.

E. quantity supplied of milk exceeds the quantity demanded.

2. A price floor is

A. usually equal to the equilibrium price established before the government imposed the price floor.

B. a legal price of zero that can be charged for a good or service.

C. the highest possible legal price that can be charged for a good or service.

D. almost always equal to the price ceiling.

E. the lowest legal price at which a good or service can be traded.

Reference no: EM131244564

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