Setting the maximum legal price above the market price will cause
A) a shortage to develop.
B) the market to reach an equilibrium outcome.
C) quantity supplied to exceed quantity demanded.
D) market inefficiencies.
Correct Answer:
Verified
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 
Q31: A nonbinding price ceiling leads to a(n):
A)
Q32: A binding price ceiling leads to a(n):
A)
Q33: If quantity supplied equals 85 units and
Q34: At a price ceiling of $6 per
Q35: Under a binding price ceiling, one expects
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