Multiple Choice
Which one of the following statements is true?
A) An effective price ceiling results in a surplus of the good.
B) An effective price floor results in a shortage of the good.
C) When the market clearing price of a good is the equilibrium, then everyone can afford it.
D) The market clearing price of a good reflects its relative scarcity.
Correct Answer:
Verified
Correct Answer:
Verified
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