S The government imposes a binding price ceiling on a perfectly competitive market with petitive price, demand becomes more elastic. With this change... A Excess demand at the price ceiling increases. B Excess demand at the price ceiling decreases. C Excess supply at the price ceiling increases. D Excess supply at the price ceiling decreases. E Quantity traded is determined by supply so the excess demand/supply is unaffected.
S The government imposes a binding price ceiling on a perfectly competitive market with petitive price, demand becomes more elastic. With this change... A Excess demand at the price ceiling increases. B Excess demand at the price ceiling decreases. C Excess supply at the price ceiling increases. D Excess supply at the price ceiling decreases. E Quantity traded is determined by supply so the excess demand/supply is unaffected.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 2CQQ
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