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A Price Ceiling That Is Set at $8 in the Market

Question 30

Multiple Choice

A price ceiling that is set at $8 in the market shown in the graph is: A) non-binding and would not affect the market. B) binding and would cause a shortage. C) binding and would cause excess supply. D) non-binding and would not prevent the market from reaching equilibrium. A price ceiling that is set at $8 in the market shown in the graph is:


A) non-binding and would not affect the market.
B) binding and would cause a shortage.
C) binding and would cause excess supply.
D) non-binding and would not prevent the market from reaching equilibrium.

Correct Answer:

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