Multiple Choice
Which of the following statements is correct?
A) A price ceiling is not binding when the price ceiling is set above the equilibrium price.
B) A price floor is not binding when the price floor is set below the equilibrium price.
C) A binding price ceiling causes a shortage and a binding price floor causes a surplus.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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