A Binding Price Ceiling

question 34

Multiple Choice

A binding price ceiling
(i) Causes a surplus.
(ii) Causes a shortage.
(iii) Is set at a price above the equilibrium price.
(iv) Is set at a price below the equilibrium price.

• A)(ii)only
• B)(iv)only
• C)(i)and (iii)only
• D)(ii)and (iv)only