Labelle, a famous cosmetic brand, introduces a new skin cleanser. initially, the product does extremely well and reaps huge profits for the company. after using the product for few months, consumers having acne complain of rashes and allergies. an external chemical agency accuses that the company used a harsh chemical that causes allergies to people with acne, and it did not include it on the ingredients list displayed on the productâs label. these harsh chemicals did not cause allergies to people with normal skin. when enquired, the companyâs ceo confesses that the products would have not done so well if they had listed the chemical. the company can be charged

answer when little or no data is available;

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.