A price ceiling is binding when
a. the government sets price above market equilibrium price.
b. the equivalent of an implicit tax on producers and an implicit subsidy to consumers.
c. the government sets price below market equilibrium price.
d. Both b and c.
b
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In the case of an appreciating domestic currency, central banks often sell foreign currencies in exchange for domestic currency to stop the appreciation
Indicate whether the statement is true or false
If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus relevant to that purchase is
a. zero. b. negative, and the consumer would not purchase the product. c. positive, and the consumer would purchase the product. d. There is not enough information given to answer this question.