Question No 48:
Which ONE of the following statements is true?
A. A legal maximum price for a good always results in a shortage of the good.
B. A price fall for a good will lead to an increase in demand for that good.
C. A price fall for a good will always lead to a contraction in supply of the good.
D. An excess supply of a good arises when a legal minimum price is set below equilibrium price.
Answer: C
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