Answer to Question #268921 in Microeconomics for Mario

Question

Use a graph to explain the effect of an imposition by the government of a maximum price in the face mask market

Answer 1

As due to the imposition of the face mask by the government, it was a necessary article for each so the demand of the product was suddenly increased then the market price was getting increase abruptly because of lower supply as comparison to demand. But later, government has fixed the maximum price so the demand was full filled by increasing the productivity and supply.