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.
d
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The expenditure multipliers occur because
A) any change in real GDP must also change the price level. B) a change in households' incomes changes autonomous expenditure. C) government expenditure on goods and services change by a proportional amount to government taxes. D) a change in autonomous expenditures changes households' incomes. E) a change in autonomous expenditure causes real GDP to change in the opposite direction.
Which of the following is true about location rents? a. They are illegal in many inner-city locations. b. They are found by taking the shaded area below the transport cost curve. c. They arise from differential costs in transporting food to the marketplace. d. They arise when the MRP is lower than the cost of transporting food to the marketplace
e. They would not exist if all land were of similar quality.