A Nonbinding Price Ceiling

question 534

Multiple Choice

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

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