A regulated maximum price that is above the equilibrium price:
A)will lead to black markets.
B)will have no effect on the market.
C)will lead to excess supply in the market.
D)will lead to excess demand in the market.

Question

Quizplus · Accepted Answer

A regulated maximum price above the equilibrium price will have no effect on the market because the market will naturally operate at the equilibrium price, which is lower than the maximum price set.

A Regulated Maximum Price That Is Above the Equilibrium Price