Day care for children is a competitive industry in long-run equilibrium at a price of S60 per day. In an effort to make day care more affordable for a larger number of families, the government passes a law that limits the amount day care providers can charge to $45 per day. As a result of this price celing. OA the supply of day care services falls and causes price to fall below $45 per day. OB. the demand for day care increases and causes price to rise above the original S0 per day. C. the demand for day care increases and many new day care centers are established. OD. parents have a more dificut time finding day care providers for their children.
Day care for children is a competitive industry in long-run equilibrium at a price of S60 per day. In an effort to make day care more affordable for a larger number of families, the government passes a law that limits the amount day care providers can charge to $45 per day. As a result of this price celing. OA the supply of day care services falls and causes price to fall below $45 per day. OB. the demand for day care increases and causes price to rise above the original S0 per day. C. the demand for day care increases and many new day care centers are established. OD. parents have a more dificut time finding day care providers for their children.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Price-searcher Markets With Low Entry Barriers
Section: Chapter Questions
Problem 16CQ
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Transcribed Image Text:Day care for children is a competitive industry in long-run equilibrium at a price of $60 per day, in an effort to make day care more affordable for a larger number of
families, the government passes a law that limits the amount day care providers can charge to $45 per day. As a result of this price ceiling.
A. the supply of day care services falls and causes price to fall below $45 per day.
B. the demand for day care increases and causes price to rise above the original $60 per day.
C. the demand for day care increases and many new day care centers are ostablished.
OD. parents have a more difficult time finding day care providers for their children.
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