the market, a. the equilibrium price must be below the price ceiling. b. the equilibrium price must be above the price ceiling. c. the forces of supply and demand must be in equilibrium. d. it will have no effect on supply or

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 57P: A low-income county decides to set a price ceiling on bread so it can make sure that bread is...
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option B is wrong.

If a price ceiling is a binding constraint on
the market,
a. the equilibrium price must be below the
price ceiling.
b. the equilibrium price must be above the
price ceiling.
c. the forces of supply and demand must be
in equilibrium.
d. it will have no effect on supply or
demand.
Transcribed Image Text:If a price ceiling is a binding constraint on the market, a. the equilibrium price must be below the price ceiling. b. the equilibrium price must be above the price ceiling. c. the forces of supply and demand must be in equilibrium. d. it will have no effect on supply or demand.
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