If There Is a Price Ceiling Set for Milk at $2.50

Multiple Choice

If there is a price ceiling set for milk at $2.50 per gallon and the current equilibrium price is $2.25 per gallon,then we can conclude

A) That the price ceiling is doing its job,keeping prices low
B) That the price ceiling is non-binding and has no effect on the market equilibrium
C) That milk imports are reducing the price
D) That grocery stores are afraid to raise the price to the ceiling level,for fear of prosecution by the government
E) That price ceilings set a minimum price