Safeway has three boxes of bran muffins that have not sold to this point at the price of $1.25 per muffin. To get rid of them before they turn bad, Safeway drops the price to $0.55. Shoppers buy them right up and strip the shelves. In an economic sense, what has just happened? A. With the new price, demand for the muffins decreased significantly. B. Safeway dropped the price to sell the surplus, and the quantity demanded of the muffins increased. C. Safeway dropped the price of the muffins to prevent customers from buying the shortage of muffins D. None of the above Question 16 What is the fundamental reason most Economists will argue against price ceilings and floors? A. The government should never interfere with a free market economy. B. Price ceilings and floors interfere with an independent market's self-correcting mechanism through price and quantity. C. Political interests at some point will make the markets efficient D. ALL of the above could be correct