What will happen in a market where a binding price ceiling is removed?
A) There will be downward pressure on the price in the legal market.
B) The products sold will improve in quality and become more plentiful.
C) Sellers will face a reduced incentive to sell the product.
D) Buyers will find the good more difficult to obtain in the legal market.
E) There will be increased pressure to buy and sell the good on the black market.

Question

Quizplus · Accepted Answer

Removing a binding price ceiling allows prices to rise to the equilibrium level, encouraging producers to supply more and possibly improve quality to compete, thus making products more plentiful and potentially better in quality.

What Will Happen in a Market Where a Binding Price