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Suppose the equilibrium price of a gallon of milk is $2.50. The government decides that people have a right to a gallon of milk at
Suppose the equilibrium price of a gallon of milk is $2.50. The government decides that people have a right to a gallon of milk at an affordable price. To protect this new right, the government passes a law setting a maximum price of $2.00 for milk. As a result of the legislation, there will be Choose one: A. an excess demand for milk. B. an excess supply of milk. C. neither an excess supply nor an excess demand for milk. D. either an excess supply or an excess demand for milk; it depends on the market reaction to the price control. Part 2(2.5 pts)See Hint As a result of the legislation, the quality of milk will most likely
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