Which of the following observations would be consistent with a binding price ceiling in a market?

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A binding price ceiling would set a maximum price below the equilibrium price, resulting in excess demand and a shortage of the good. As a result, quantity demanded would exceed quantity supplied, which could lead to a reduction in the quantity bought and sold in the market. Therefore, observation A is consistent with a binding price ceiling. Observation B is not necessarily true, as the reduction in quantity demanded could be due to other factors such as a decrease in consumers' income or preferences. Observation C is also not necessarily true, as firms may not be willing or able to supply more of the good at the lower price.

Which of the Following Observations Would Be Consistent with a Binding