All changes saved Assume that the equilibrium price for eggs

All changes saved Assume that the equilibrium price for eggs is $0.75 for a half-dozen. If the government believes the price for eggs is too high, and sets a temporary price cap at s0.50 for a half-dozen, what will happen? Select all that apply Select all that apply: There won\'t be enough people to buy all of the extra eggs. After the price cap is lifted, prices will remain the same There will be a shortage of eggs After the price cap is lifted, prices will rise to the equilibrium price

Solution

Ans is C and D And if have to choose only in one,then C

When price decreases to 0.50 then there will be increase in quantity demanded and decrease in quantity supplied leading to increase in excess demand and there will be shortage of eggs.

And when price cap is liftes then once again price will increase fo equilibrium price