Suppose the government wants to encourage Americans to exercise more, so it imposes a binding price ceiling on the market for in-home treadmills. As a result,
A) the demand for treadmills will increase.
B) the supply of treadmills will decrease.
C) a shortage of treadmills will develop.
D) a surplus of treadmills will develop.
Correct Answer:
Verified
Q224: A legal minimum on the price at
Q225: If a nonbinding price floor is imposed
Q226: If a price floor is not binding,
Q227: A surplus results when a
A)nonbinding price floor
Q228: A price ceiling is
A)often imposed on markets
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