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In Order for a Price Ceiling to "Bind," It

Question 29

Multiple Choice

In order for a price ceiling to "bind," it:


A) must be set above the equilibrium price, and will likely cause a shortage.
B) must be set below the equilibrium price, and will likely cause a shortage.
C) must be set above the equilibrium price, and will likely cause a surplus.
D) must be set below the equilibrium price, and will likely cause a surplus.

Correct Answer:

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