If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?

By: |Published on: Aug 6|Categories: Economics WAEC| 0 comments

A. greater than the equilibrium supply
B. smaller than the equilibrium supply
C. the same as the equilibrium supply
D. a determinant of the market forces of equilibrium

Correct Answer:

Option B – smaller than the equilibrium supply

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