A binding price ceiling I.causes a surplus.
II)causes a shortagE.iiI.is set at a price above the equilibrium pricE.iv.
Is set at a price below the equilibrium pricE.

Question

A binding price ceiling I.causes a surplus.
II)causes a shortagE.iiI.is set at a price above the equilibrium pricE.iv.
Is set at a price below the equilibrium pricE.​

Quizplus · Accepted Answer

A binding price ceiling, when set below the equilibrium price, causes a shortage because the price is too low to clear the market, leading to higher demand than supply.

A Binding Price Ceiling I.causes a Surplus