Question

An increase in an effective minimum legal price will do what to prices and quantities actually sold in a market? Prices will _________ and the quantities actually sold will ________.a. increase; decreaseb. increase; increasec. decrease; decreased. decrease; increase

Answer 1

Answer:

The correct answer is A.

Explanation:

An increase in the minimum price will increase prices and quantities offered. A minimum price often is above the equilibrium price. As prices rise, quantity sold declines. The difference between offer and demand will generate an accumulation of stock.