1) If a price ceiling is lower than the equilibrium market price, then a) The price ceiling is non-binding, and therefore the price is held at the price ceiling. b) The price ceiling is binding, and therefore the price is held at the price ceiling. c) The price ceiling is non-binding, and therefore the price is the equilibrium market price. d) The price ceiling is binding, and therefore the price is the equilibrium market price. e) None of the above.
1) If a price ceiling is lower than the equilibrium market price, then a) The price ceiling is non-binding, and therefore the price is held at the price ceiling. b) The price ceiling is binding, and therefore the price is held at the price ceiling. c) The price ceiling is non-binding, and therefore the price is the equilibrium market price. d) The price ceiling is binding, and therefore the price is the equilibrium market price. e) None of the above.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 2MC
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1) If a
a) The price ceiling is non-binding, and therefore the price is held at the price ceiling.
b) The price ceiling is binding, and therefore the price is held at the price ceiling.
c) The price ceiling is non-binding, and therefore the price is the equilibrium market price.
d) The price ceiling is binding, and therefore the price is the equilibrium market price.
e) None of the above.
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