In the market for Widgets, the equilibrium price is $ 20 and the equilibrium quantity is 5000 Widgets, which of the following statements is FALSE? A. None of the above B.If the government sets a price ceiling at $ 15 companies will increase the quantity supplied C.If the government sets the price floor for widgets at $ 25 there will be a surplus of widgets in the market D.If the price ceiling is set at $ 15 there will be a shortage of Widgets in the market

We have equilibrium in market where price is $20 and equilibrium quantity is 5000

Answered: In the market for Widgets, the…

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 4WNG

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In the market for Widgets, the equilibrium price is $ 20 and the equilibrium quantity is 5000 Widgets, which of the following statements is FALSE?

	A.	None of the above
	B.	If the government sets a price ceiling at $ 15 companies will increase the quantity supplied
	C.	If the government sets the price floor for widgets at $ 25 there will be a surplus of widgets in the market
	D.	If the price ceiling is set at $ 15 there will be a shortage of Widgets in the market

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