If the government imposes a price ceiling above the market equilibrium price, then:

Name: If the government imposes a price ceiling above the market equilibrium price, then:
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Question

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When a price ceiling is set above the market equilibrium price, it does not affect the market because the equilibrium price is already lower than the ceiling. Therefore, the market operates as if the price ceiling were not there, allowing the market equilibrium price to prevail.

If the Government Imposes a Price Ceiling Above the Market