If a Binding Price Ceiling Is in Effect and If

question 8

Multiple Choice

If a binding price ceiling is in effect and if the demand for the product increases,one consequence would be

• A)an increase in the amount of excess demand.
• B)a decrease in the amount of excess supply.
• C)an increase in the amount of excess supply.
• D)a decrease in the amount of excess demand.
• E)no change in the excess supply or demand for the product.