Do all buyers benefit from a binding price ceiling?
A) Yes.A binding price ceiling benefits all buyers because it allows them to obtain the good in the legal market.
B) No.A binding price ceiling benefits only some buyers because not all are able to obtain the good in the legal market.
C) No.A binding price ceiling benefits no buyers because sellers are unwilling to sell any of their products.
D) No.A binding price ceiling benefits only some buyers because,although the price is initially lower,it eventually increases to the equilibrium price.
E) No.A binding price ceiling benefits no buyers because they are unwilling to buy any of the products at a price higher than the equilibrium.

Question

Quizplus · Accepted Answer

A binding price ceiling, set below the market equilibrium price, creates a shortage because the quantity demanded exceeds the quantity supplied at that price. While some buyers benefit from the lower price, not all buyers can purchase the product due to the shortage, meaning only some buyers benefit.

Do All Buyers Benefit from a Binding Price Ceiling