In the diagram above, what will happen if the government sets the price for Internet access at Point B? There will be a shortage of Internet access.
There will be a surplus of Internet access.
The price of Internet access will rise to meet equilibrium.
The price of Internet access will fall to meet equilibrium.

There will be a shortage of Internet access.

Explanation:

From the graph shown below, it could be seen that the slope is a typical slope obtained in a graph of demand-supply curve. Going by the demand-supply theory, it means that, the higher the price of a service or goods the lower the quantity demanded and vice versa.

For the internet access, since the price is set at point B (lower price), definitely, there will be shortage of internet access. This is because, the price is cheap thereby lower revenue to the government.

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explanation:

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