the market, a. the equilibrium price must be below the price ceiling. b. the equilibrium price must be above the price ceiling. c. the forces of supply and demand must be in equilibrium. d. it will have no effect on supply or

the market, a. the equilibrium price must be below the price ceiling. b. the equilibrium price must be above the price ceiling. c. the forces of supply and demand must be in equilibrium. d. it will have no effect on supply or

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Answer only if you are 100% sure. I need correct answer with short explanation. I will rate accordingly.

option B is wrong.

If a price ceiling is a binding constraint on
the market,
a. the equilibrium price must be below the
price ceiling.
b. the equilibrium price must be above the
price ceiling.
c. the forces of supply and demand must be
in equilibrium.
d. it will have no effect on supply or
demand.

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