Price ceilings are never binding when set above the equilibrium price

a. True
b. False
Indicate whether the statement is true or false

True

Economics

You might also like to view...

Trade agreements help to lower barriers to trade

a. True b. False

Economics

Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will

A) fall by $200. B) fall by $300. C) remain the same. D) rise by $200. E) rise by $300.

Economics