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If a Price Ceiling Is Set Above the Equilibrium Price

Question 77

Multiple Choice

If a price ceiling is set above the equilibrium price, then


A) there will be neither a shortage nor a surplus of the good.
B) the price ceiling affects suppliers but not demanders.
C) the price ceiling will generate revenue for the government.
D) there will be a shortage of the good.
E) there will be a surplus of the good.

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