In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. An article in the Wall Street Journal stated that Chinese authorities were concerned that escalating prices would cause inflation and be followed by civil unrest. (Source: Wall Street Journal, February 20, 2011) If the Chinese government sets a price ceiling below the equilibrium price, the result will be to:.
A) increase total surplus.
B) eliminate deadweight loss.
C) create deadweight loss.
D) increase surplus and create deadweight loss.
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