Suppose the Free- Market Equilibrium Price for Ice Time at Privately

Multiple Choice

Suppose the free- market equilibrium price for ice time at privately operated hockey arenas is $250 per hour. If the municipal government imposes a price ceiling of $130 per hour, we can expect to see

A) an excess supply of ice time.
B) an adjustment of the free- market equilibrium price to $100.
C) an excess demand for ice time.
D) that neither excess supply nor excess demand is created.
E) a black market price below the free- market equilibrium price.