Which of the following statements describes a price ceiling?
a. A price ceiling is a legal maximum on the price at which a good can be sold.
b. A price ceiling is a legal minimum on the price at which a good can be sold.
c. A price ceiling occurs when the price in the market is temporarily set at market equilibrium.
d. A price ceiling occurs when the price in the market is temporarily above equilibrium.
Ans: a. A price ceiling is a legal maximum on the price at which a good can be sold.
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