Refer to Figure 6-31. Suppose that a price ceiling is imposed in this market at a price of $60. The effect of this price ceiling would be a. binding and cause a shortage of 50 units. b. nonbinding and cause a shortage of 50 units. c. nonbinding and have no effect on the market. Default to equilibrium. d. binding and cause a shortage of 20 units.

Refer to Figure 6-31. Suppose that a price ceiling is imposed in this market at a price of $60. The effect of this price ceiling would be a. binding and cause a shortage of 50 units. b. nonbinding and cause a shortage of 50 units. c. nonbinding and have no effect on the market. Default to equilibrium. d. binding and cause a shortage of 20 units.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

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