To encourage the use of sustainable energy sources, including biofuel, the government of Fimorania wishes...
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Accounting
To encourage the use of sustainable energy sources, including biofuel, the government of Fimorania wishes to impose a maximum price on biofuel. It has decided on a maximum price which is below the equilibrium market price for biofuel.
Which of the following is likely to be the effect of imposing this maximum price on biofuel?
OA. Illegal price-cutting
OB. An increase in inventory levels of the biofuel
OC. Economic activity outside of government-sanctioned channels
OD. An excess in supply of the biofuel
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