the government has set a price floor on bread. manufacturers cannot sell loaves for less than $5.00, which…
the government has set a price floor on bread. manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price.\nwhat will most likely result from this price control?\nthe quantity demanded for bread will decrease, and the quantity supplied will increase.\nthe quantity demanded and quantity supplied for bread will increase.\nthe quantity demanded for bread will increase, and the quantity supplied will decrease.\nthe quantity demanded and quantity supplied for bread will decrease.
Answer
Brief Explanations:
When a price - floor is set above the market price, according to the law of demand and supply, as the price increases, the quantity demanded by consumers decreases (because they are less willing to buy at a higher price). At the same time, the quantity supplied by producers increases (because they are more willing to sell at a higher price).
Answer:
The quantity demanded for bread will decrease, and the quantity supplied will increase.