A price ceiling that is not binding will
A) cause a surplus in the market.
B) cause a shortage in the market.
C) cause the market to be less efficient than it would be without the price ceiling.
D) have no effect on the market price.
Correct Answer:
Verified
Q1: Price controls
A)always produce an equitable outcome.
B)always produce
Q2: A legal minimum price at which a
Q7: Policymakers sometimes are attracted to price controls
Q8: A price ceiling is binding when it
Q8: A legal maximum price at which a
Q9: Price controls are usually enacted
A) as a
Q9: A price ceiling
A)is a legal maximum on
Q10: A price floor
A)is a legal minimum on
Q239: The presence of price controls in a
Q273: Figure 6-1
Panel (a)Panel (b) 
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