A binding price ceiling will cause a persistent _____,and a binding price floor will cause a persistent _____.
A)surplus;surplus
B)shortage;surplus
C)shortage;shortage
D)surplus;shortage

Question

Quizplus · Accepted Answer

A binding price ceiling, set below the equilibrium price, causes a shortage because the quantity demanded exceeds the quantity supplied. A binding price floor, set above the equilibrium price, causes a surplus because the quantity supplied exceeds the quantity demanded.

A Binding Price Ceiling Will Cause a Persistent _____,And a Binding