In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is

If a price ceiling is a binding constraint on a market, then a. the equilibrium price must be below the price ceiling

b. the quantity supplied must exceed the quantity demanded. c. sellers cannot sell all they want to sell at the price ceiling. d. buyers cannot buy all they want to buy at the price ceiling.

A price floor set below the equilibrium price will cause which of the following?

A. an increase in demand B. a surplus C. a shortage D. None of these