You are out camping in a remote region away from all civilization. the next day, you plan to hike around and return to camp before dusk. your friends suggest that after hiking, you might want to enjoy a warm shower. they suggest that before you head out in the morning, you should suspend a strong, black cloth bag full of about 5 gallons of water, so that it sits in sunshine all day. when you return, the water should be warm, and you can enjoy a luxury because of good planning. it works and you are delighted and refreshed! the process that you used to get a warm shower illustrates

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.