For a price ceiling to be binding, it
a. cannot be determined.
b. is the same as the equilibrium price.
c. must be above the equilibrium price.
d. must be below the equilibrium price.
d. must be below the equilibrium price.
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The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000. B) Black market rents might be as high as $1,300 per month. C) The quantity of town homes supplied increases to 250,000. D) More town homes are rented after the rent ceiling that before. E) The quantity demanded of town homes is less than the quantity supplied.
When measuring GDP, only final goods and services are counted in order to avoid double counting
Indicate whether the statement is true or false