the government has set a price floor on bread. manufacturers cannot sell loaves for less than $5.00, which…

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.\nwhat will most likely result from this price control?\n○ the quantity demanded for bread will decrease, and the quantity supplied will increase.\n○ the quantity demanded and quantity supplied for bread will increase.\n○ the quantity demanded for bread will increase,and the quantity supplied will decrease.\n○ the quantity demanded and quantity supplied for bread will decrease.

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.\nwhat will most likely result from this price control?\n○ the quantity demanded for bread will decrease, and the quantity supplied will increase.\n○ the quantity demanded and quantity supplied for bread will increase.\n○ the quantity demanded for bread will increase,and the quantity supplied will decrease.\n○ the quantity demanded and quantity supplied for bread will decrease.

Answer

Brief Explanations:

A price floor set above the equilibrium market price violates the law of demand (higher price lowers quantity demanded) and the law of supply (higher price raises quantity supplied). Consumers will buy less bread at the higher mandated price, while producers will supply more bread to capitalize on the higher price.

Answer:

The quantity demanded for bread will decrease, and the quantity supplied will increase.