Suppose the market for eggs is in equilibrium at a price of


Suppose the market for eggs is in equilibrium at a price of $2 per dozen eggs. If the government decides to enact a new price floor at $1.50 per dozen eggs, what outcome does economic theory predict will occur?

a. A shortage of eggs

b. A surplus of eggs

c. Demand for eggs will become inelastic

d. This policy should have no immediate impact on the market for eggs

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Business Economics: Suppose the market for eggs is in equilibrium at a price of
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