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Business, 14.03.2020 00:27 achoward08

In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in the Wall Street Journal states that Chinese authorities are concerned that escalating prices will cause inflation and be followed by civil unrest. (Source: Wall Street Journal, February 20, 2011) If the Chinese government sets a price ceiling below the equilibrium price, the result will be:. a. an increase in the quantity demanded. b. a decrease in the quantity supplied. c. a shortage. d. eliminate deadweight loss. e. create deadweight loss.

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