Question: Consider the short-run supply and demand curves for pumpkins using the sheet you were provided. Pumpkins are a normal good. Consider Panel d. The government
Consider the short-run supply and demand curves for pumpkins using the sheet you were provided. Pumpkins are a normal good. Consider Panel d. The government has a price ceiling on pumpkins at $4 per pound... and then the supply curve shifts as shown. Which of the following would your instructor most agree with? Group of answer choices The price ceiling ensures that both consumers and producers benefit from cheaper pumpkins The price ceiling is good because otherwise the price of pumpkins would rise The price ceiling prevents the message that pumpkins are now more costly from being heard by consumers. Price ceilings result in harmful surpluses
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