What will happen in a market where a non-binding price ceiling is removed?
A) There will be downward pressure on the price in the legal market.
B) The products sold will improve in quality and become more plentiful.
C) Sellers will face a reduced incentive to sell the product.
D) The price and quantity will not change in the legal market.
E) There will be increased pressure to buy and sell the good on the black market.

Question

Quizplus · Accepted Answer

A non-binding price ceiling is set above the equilibrium price, so removing it does not affect the market price or quantity.

What Will Happen in a Market Where a Non-Binding Price