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Suppose the Market Supply Is Initially at S1 and a Price

Question 60

Multiple Choice

Suppose the market supply is initially at S1 and a price ceiling is set at 8.If supply shifts from S1 to S2,then A) The price ceiling will no longer bind. B) The price ceiling will prevent output from changing. C) The size of the shortage will increase. D) The market will not reach equilibrium. Suppose the market supply is initially at S1 and a price ceiling is set at 8.If supply shifts from S1 to S2,then


A) The price ceiling will no longer bind.
B) The price ceiling will prevent output from changing.
C) The size of the shortage will increase.
D) The market will not reach equilibrium.

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