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Figure 4-18 Refer to Figure 4-18

Question 2

Multiple Choice

Figure 4-18 Figure 4-18 Refer to Figure 4-18. In this market, which of the following price controls would be binding? A) a price ceiling of $2.00, and it would cause a shortage B) a price ceiling of $5.00, and it would cause a surplus C) a price floor of $2.00, and it would cause a shortage D) All of the above are correct. Refer to Figure 4-18. In this market, which of the following price controls would be binding?


A) a price ceiling of $2.00, and it would cause a shortage
B) a price ceiling of $5.00, and it would cause a surplus
C) a price floor of $2.00, and it would cause a shortage
D) All of the above are correct.

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