Multiple Choice
The shortages associated with a binding price ceiling will be the smallest when
A) both supply and demand are highly elastic.
B) supply is highly inelastic and demand is highly elastic.
C) supply is highly elastic and demand is highly inelastic.
D) both supply and demand are highly inelastic.
E) none of the above-the size of the shortage has nothing to do with demand and supply elasticities.
Correct Answer:
Verified
Correct Answer:
Verified
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