The lower the price ceiling is relative to the market equilibrium price, the:
A) larger the surplus.
B) smaller the surplus.
C) smaller the shortage.
D) larger the shortage.
Correct Answer:
Verified
Q19: Use the following to answer questions:
Figure: Price
Q20: Price ceilings create five important effects:
A) shortages,
Q21: Shortages occur when prices are held below
Q22: If quantity supplied equals 80 units and
Q23: Price controls instituted by President Nixon in
Q25: Use the following to answer questions:
Figure: Labor
Q26: A shortage results when:
A) a price floor
Q27: When a price ceiling is in effect,
Q28: Use the following to answer questions:
Figure: Labor
Q29: Figure: Supply and Demand 1 
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