If a price ceiling is binding, then
A) there will be no effect on the market price or quantity sold.
B) there will be a surplus in the market.
C) the market will be more efficient than it would be without the price ceiling.
D) there will be a shortage in the market.
Correct Answer:
Verified
Q228: A price ceiling is
A)often imposed on markets
Q229: Suppose the government wants to encourage Americans
Q230: Figure 6-1 Q231: The presence of a price control in Q232: Suppose the equilibrium price of a physical Q234: If the government imposes a binding price Q235: A price floor is Q236: The imposition of a binding price ceiling Q237: To say that a price ceiling is Q238: Figure 6-2
Graph (a)
Graph (b)
A)a legal maximum on
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