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Figure 6-5 Price 16 + 14 12 + 10 D 20 40 60 80 100 120 140 160 180 200 Quantity Refer to Figure 6-5.
Figure 6-5 Price 16 + 14 12 + 10 D 20 40 60 80 100 120 140 160 180 200 Quantity Refer to Figure 6-5. Suppose the market is initially in equilibrium. Then the government imposes a price control, as represented by the solid horizontal line on the graph. If the price control is a price floor, then the price control O A. causes the quantity demanded to decrease by 50 units, relative to the initial equilibrium. O B. causes the quantity supplied to increase by 40 units, relative to the initial equilibrium. O C. means that some firms will not be able to sell all that they want O D. All of the above are correct
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