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:
Verified
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