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Price Ceilings and Price Floors That Are Binding

Question 246

Multiple Choice

Price ceilings and price floors that are binding


A) are desirable because they make markets more efficient and more fair.
B) cause surpluses and shortages to persist because price cannot adjust to the market equilibrium price.
C) can have the effect of restoring a market to equilibrium.
D) are imposed because they can make the poor in the economy better off without causing adverse effects.

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