The equilibrium price for travel by taxi is $1 per mile. The local government sets a price ceiling of $3 per mile. What is the effect on the market for travel by taxi?
A) Market price rises to $4 per mile.
B) Market price rises to $3 per mile.
C) Market price rises to $2 per mile.
D) Market price remains at $1 per mile.
Correct Answer:
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