If the central planners mandate the production of 40 million T-shirts per month, but allow the market to determine the price, the price of a T-shirt will be ( 20 rubles / 30rubles/ 40rubles/ 50rubles ) .
Now suppose the central planners mandate the production of 50 million T-shirts and fix the price at 10 rubles per T-shirt, as represented by the horizontal tan drop line (dash symbol) in the graph. At 10 rubles per T-shirt, the quantity of T-shirts demanded is (20/30 / 40 / 50 / 60 million) per month, which is ( equal to /less than / greater than ) the mandated production level, leading to ( an equilibrium quantity / a shortage / a surplus) of (10 / 20 / 30 / 40 / 50 / 60/70 million) T-shirts per month.
Suppose that next year the government mandates a production of 20 million T-shirts per month.
True or False: If the government sets a price that causes a shortage, producers will likely sell T-shirts illegally at a price above the price set by the government.
O False
O True
