Solved

Figure 6-5 -Refer to Figure 6-5.If the Horizontal Line on the Graph

Question 95

Multiple Choice

Figure 6-5
Figure 6-5 -Refer to Figure 6-5.If the horizontal line on the graph represents a price ceiling,then the price ceiling is A) binding and creates a surplus of 40 units of the good. B) binding and creates a surplus of 90 units of the good. C) not binding but creates a surplus of 40 units of the good. D) not binding, and there will be no surplus or shortage of the good.
-Refer to Figure 6-5.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

A) binding and creates a surplus of 40 units of the good.
B) binding and creates a surplus of 90 units of the good.
C) not binding but creates a surplus of 40 units of the good.
D) not binding, and there will be no surplus or shortage of the good.

Correct Answer: