hat would be the impact of a price ceiling of $ 9 (a) a shortage of 12 units. (b) a shortage of 9 units. (c) a new equilibrium quantity would be established. (d) a surplus of 20 units. (e) a surplus of 12 units.
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02. What would be the impact of aprice ceiling of $ 9(a) a shortage of 12 units.
(b) a shortage of 9 units.
(c) a new
equilibrium quantity would be established.(d) a surplus of 20 units.
(e) a surplus of 12 units.
A price ceiling is the government-imposed maximum price of a product.
A price ceiling is binding when it is set below the equilibrium price.
A binding price ceiling causes a shortage in the market. (i.e., quantity supply is lower than quantity demanded)
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A price ceiling is non-binding when it is set above the equilibrium price.
Because market forces bring the equilibrium in the market whenever the price ceiling is set above the equilibrium price.
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