If the government decides to set the price of widgets below the equilibrium price

If the government decides to set the price of widgets below the equilibrium price



A. people who buy the widgets are now worse off
B. the market quantity of widgets will increase
C. producers of widgets are not better off
D. most economists would argue that one could reallocate resources and improve total welfare in the system


Answer: D. most economists would argue that one could reallocate resources and improve total welfare in the system


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