Cima C04 Exam Question No 43

Question No 43:

If the government imposed a price for a good that was above the equilibrium price, the consequence would be?

A. A contraction of demand, an increase in supply and a market surplus
B. A decrease in demand, an extension of supply and a market surplus
C. A contraction in demand, an extension in supply and a market surplus
D. A rise in supply, a fall in demand and a market shortage

Answer: C