A government-imposed price of $12 in this market is an example of a O a. non-binding price floor that creates a surplus. O b. binding price floor that creates a surplus. C. non-binding price ceiling that creates a shortage.

A government-imposed price of $12 in this market is an example of a O a. non-binding price floor that creates a surplus. O b. binding price floor that creates a surplus. C. non-binding price ceiling that creates a shortage.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 7SCQ: What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of...

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Question

A government-imposed price of $12 in this market is an example of a
O a. non-binding price floor that creates a surplus.
O b. binding price floor that creates a surplus.
C. non-binding price ceiling that creates a shortage.

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