Suppose that the equilibrium price of a mountain bike is $250. But then the government decides that people have a right to affordable mountain biking. To protect this new right, the government passes a law setting a maximum price of $150 for a bike. As a result of the legislation, there will be Group of answer choices a greater number of mountain bikes sold than before the legislation. a smaller number of mountain bikes sold than before the legislation. the same number of mountain bikes sold than before the legislation. More information is needed to determine the answer.

Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.