What Will Happen in a Market Where a Nonbinding Price

question 160

Multiple Choice

What will happen in a market where a nonbinding price ceiling is removed?

• A) There will be downward pressure on the price in the legal market.
• B) The products sold will improve in quality and become more plentiful.
• C) Sellers will face a reduced incentive to sell the products.
• D) The price and quantity will not change in the legal market.
• E) There will be increased pressure to buy and sell the goods on the black market.

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