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5 October, 22:04

If the government institutes an effective price ceiling on potato chips, then there will be a decrease in demand for and an increase in supply of potato chips. decrease in supply of potato chips. decrease in quantity supplied of potato chips. decrease in demand for potato chips. decrease in quantity demanded for potato chips.

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  1. 5 October, 22:36
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    decrease in supply of potato chips

    Explanation:

    A price ceiling is defined as a maximum price set by the government for a particular good or service. Sellers are not allowed to sell above this price in the market.

    Government implements price ceiling to protect consumers against exploitative pricing by sellers.

    As price ceilings are set the profit margin of sellers is reduced so it makes it an unattractive endeavour.

    They will reduce amount supplied. Due to scarcity buyers will now be willing to buy the product in the black market for higher prices.
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