A Price Ceiling That Is Set Above the Equilibrium Price

question 30

Multiple Choice

A price ceiling that is set above the equilibrium price

• A)causes suppliers to raise their prices.
• B)is binding.
• C)is non-binding.
• D)creates a shortage.

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Definitions:

Annuity Due

An annuity for which payments are made at the beginning of each period.

Equal Annual Deposits

Routine, consistent amounts of money deposited into an account or investment over a set period.

College Tuition

Refers to the amount of money charged by colleges or universities for instruction and other services.