Multiple Choice
Figure 6-5 
-Refer to Figure 6-5. If the horizontal line on the graph represents a price ceiling, then the price ceiling is
A) binding and creates a surplus of 60 units of the good.
B) binding and creates a surplus of 20 units of the good.
C) not binding but creates a surplus of 40 units of the good.
D) not binding, and there will be no surplus or shortage of the good.
Correct Answer:
Verified
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