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Suppose the Government Decides to Eliminate a Binding Price Ceiling

Question 40

Multiple Choice

Suppose the government decides to eliminate a binding price ceiling that it had previously imposed on a particular good.It can be expected that


A) the price would increase,quantity demanded would decrease,and quantity supplied would decrease.
B) the price would increase,quantity demanded would decrease,and quantity supplied would increase.
C) the price would decrease,quantity demanded would decrease,and quantity supplied would increase.
D) the price would decrease,quantity demanded would increase,and quantity supplied would decrease.
E) no change would take place

Correct Answer:

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