If a price ceiling is set above the equilibrium price, then
A. prices will fall as soon as the ceiling price is abolished.
B. prices will remain the same (not rise) when the price ceiling is lifted.
C. equilibrium price and ceiling prices are two totally different concepts and hence do not affect each other.
D. prices will begin to rise rapidly when the price ceiling is lifted.
B. prices will remain the same (not rise) when the price ceiling is lifted.
Economics
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If we want to gauge the sacrifice made by a taxpayer, we should use the
a. average tax rate. b. marginal tax rate. c. lump-sum tax rate. d. sales tax rate.
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