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Suppose the Government Imposed a Binding Price Ceiling in the Market

Question 56

Multiple Choice

Suppose the government imposed a binding price ceiling in the market for housing. Other things equal, the effect of this price ceiling will be to:


A) decrease the quantity of houses for sale in the market.
B) give an incentive for buyers and sellers to of houses to make illegal transactions.
C) allow fewer low-income people to buy water.
D) all of the choices are correct.

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