The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?
The demand for bread will fall, which could result in an excess supply.
The demand for bread will rise, which could result in an excess supply.
The demand for bread will fall, which could result in a decreased supply.
The demand for bread will rise, which could result in a decreased supply.

Question

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?
The demand for bread will fall, which could result in an excess supply.
The demand for bread will rise, which could result in an excess supply.
The demand for bread will fall, which could result in a decreased supply.
The demand for bread will rise, which could result in a decreased supply.