In Competitive Markets,binding Price Floors and Binding Price Ceilings Lead

question 11

Multiple Choice

In competitive markets,binding price floors and binding price ceilings lead to

• A)a reduction in deadweight loss.
• B)fairer prices for consumers and producers,and therefore are better for society as a whole.
• C)an overall increase in economic surplus,and therefore to market efficiency.
• D)a maximization of economic surplus.
• E)an overall reduction in economic surplus,and therefore to market inefficiency.

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