In 2021 the military regime in Myanmar (formerly Burma) set a floor price for rice at 540,000 kyats for 100 baskets of paddy. Assuming that the market price had been around 600,000 kyats, what would be the impact on Quantity Demanded and Quantity Supplied? Is there likely to be a surplus or a shortage of rice?

Answer rating: 100% (QA)

1 Impact on Quantity Demanded When price is higher than the floor price cons... View the full answer