The following diagram shows the equilibrium price of good X as set by the forces of demand and supply. Suppose the government sets the maximum price...

      

The following diagram shows the equilibrium price of good X as set by the forces of demand and supply.
fig6326920191654.png
Suppose the government sets the maximum price at Sh.100 which is below the equilibrium price, highlight four effects of such a move.

  

Answers


Kavungya
oThere will be excess demand hence shortage
oRationing of goods
oQueuing for commodity
oTraders may hoard the goods
oBlack marketing
Kavungya answered the question on September 26, 2019 at 13:55


Next: A pulse-echo sounder is used by fishing boat to locate a shoal of fish in water. The sounder sends sound of frequency 21KHz and wavelength...
Previous: The figure below shows a uniform triangular lamina.Locate the centre of gravity of lamina.

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions