4. Price controls in a command economy Suppose the following graph depicts the market for matryoshkas (sets of nesting dolls) in the Soviet Union, which was a command economy. The vertical supply curve reects the central planners' mandated level of total production, 200 million sets of nesting dolls per month. i\" 3 '0 no I: in in a a n6 '6' in ._ o n. 3 a 3' 5 I.\" 2 D: n. Demand so 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of sets of nesting dolls per month) If the central planners mandate the production of 200 million sels of nesting dolls per month, but allow the market to determine the price, the price of a set of nesting dolls will be V . Now suppose the central planners mandate the production of 200 million sels of nesting dolls and x the price at 100 kopeks per set of nesting dolls, as represented by the horizontal tan drop line (dash symbol) in the graph. At 100 kopeks per set of nesting dolls, the quantity of sets of nesting dolls demanded is V per month, which is V the mandated production level, leading to V of V sels of nesting dolls per month. Suppose that next year the government mandates a production of 100 million sets of nesting dolls per month. True or False: If the government sets a price that causes a surplus, producers will likely sell sets of nesting dolls illegally at a price above the price set by the government. True False Continue without saving