A price ceiling will be binding only if it is set
A) equal to equilibrium price.
B) above equilibrium price.
C) below equilibrium price.
D) none of the above; a price ceiling is never binding.
Correct Answer:
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Q1: Policymakers use taxes
A)to raise revenue for public
Q7: Policymakers sometimes are attracted to price controls
Q8: A legal maximum price at which a
Q9: A price ceiling
A)is a legal maximum on
Q10: A price floor
A)is a legal minimum on
Q13: Figure 6-1 Q14: Which of the following is the most Q15: To say that a price ceiling is Q16: Suppose a price ceiling is not binding;this Q273: Figure 6-1
Panel (a)Panel (b) 
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