Governments establish price floors when it is believed the market equilibrium price is too high

An ideal pollution control policy: a. would reduce pollution to zero

b. would reduce pollution to the socially efficient level. c. discourage firms from wasting time developing abatement technologies. d. reduce pollution as quickly as possible, regardless of the cost.

A binding price ceiling is: a. set with the aim of increasing the consumer surplus. b. set at the equilibrium price level

c. set below the equilibrium price level. d. set above the equilibrium price level.