Which of the Following Statements Best Differentiates Price Ceilings and Price

Multiple Choice

Which of the following statements best differentiates price ceilings and price floors?

A) Price ceilings represent minimum prices, while price floors represent maximum prices.
B) Binding price ceilings are always set below the equilibrium price, whereas binding price floors are always set above the equilibrium price.
C) Price ceilings and price floors have the same effects.
D) Price floors cause shortages to appear, whereas price ceilings have the opposite effect.
E) Price ceilings are always effective, whereas price floors are rarely effective.