In order to be binding, a price ceiling

A) must be high enough for firms to earn a profit.
B) must coincide with the free market equilibrium price.
C) must lie below the free market equilibrium price.
D) must lie above the free market equilibrium price.

C

Economics

You might also like to view...

When the demand for housing slumps, carpenters might expect their incomes to fall

a. True b. False

View
Economics

Any cost of negotiating or enforcing a contract is

a. an external cost. b. a private cost. c. a transaction cost. d. a side payment.

View
Economics