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. What will most likely result from this price control?
The most likely result of this price control would be that the demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.
