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MMLU / If corn is produced in a perfectly competitive market and the government placed…

Problem

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question

If corn is produced in a perfectly competitive market and the government placed a price ceiling above equilibrium, which of the following would be true?

choices

  1. There would be no change in the amount of corn demanded or supplied.
  2. There would be a shortage created of corn.
  3. There would be a surplus created of corn.
  4. The producers of corn would lose revenue due to the decreased price.

subject

high_school_microeconomics

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Source and history

Official source

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