Multiple Choice
A nonbinding price ceiling
(i) causes a surplus.
(ii) causes a shortage.
(iii) is set at a price above the equilibrium price.
(iv) is set at a price below the equilibrium price.
A) (i) only
B) (iii) only
C) (i) and (iii) only
D) (ii) and (iv) only
Correct Answer:
Verified
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