In Competitive Markets, Binding Price Floors and Binding Price Ceilings

Multiple Choice

In competitive markets, binding price floors and binding price ceilings lead to

A) a reduction in deadweight loss.
B) an overall increase in economic surplus, and therefore to market efficiency.
C) a maximization of economic surplus.
D) fairer prices for consumers and producers, and therefore are better for society as a whole.
E) an overall reduction in economic surplus, and therefore to market inefficiency.