3 If the government imposes a price ceiling on the price of broccoli that is below the market equilibrium price then

Select one:

There will be a surplus

Market demand will still equal market supply

There will be a shortage

The price ceiling will not stop the market from converging to equilibrium

4If you own a caf that sells coffee and your economist friend tells you that the price elasticity of demand for coffee is 1.2, then to increase your revenue you should

Select one:

Decrease your advertising spending

Buy another coffee machine

Increase your coffee price

Decrease your coffee price