The imposition of a price ceiling on a market often results in:
A. an increase in investment in the industry.
B. a surplus
C. a shortage
D. a decrease in discrimination on the part of sellers.
Answer:C
The imposition of a price ceiling on a market often results in:
A. an increase in investment in the industry. B. a surplus C. a shortage D. a decrease in discrimination on the part of sellers.
Explanation: 27. On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?