If a price ceiling is set by the government above the market equilibrium price, then A: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage. C: the market equilibium price will prevail. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a surplus.
If a price ceiling is set by the government above the market equilibrium price, then A: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage. C: the market equilibium price will prevail. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a surplus.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 15SQ
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning