Figure 6-5 -Refer to Figure 6-5.If the Solid Horizontal Line on the Line

Multiple Choice

Figure 6-5
-Refer to Figure 6-5.If the solid horizontal line on the graph represents a price ceiling,then the price ceiling is

A) binding and creates a surplus of 60 units of the good.
B) binding and creates a surplus of 20 units of the good.
C) not binding but creates a surplus of 40 units of the good.
D) not binding,and there will be no surplus or shortage of the good.