If a Price Ceiling Is a Binding Constraint on the Market

question 89

Multiple Choice

If a price ceiling is a binding constraint on the market,

• A)the equilibrium price must be below the price ceiling.
• B)there is excess supply.
• C)sellers cannot sell all they want to sell at the price ceiling.
• D)buyers cannot buy all they want to buy at the price ceiling.

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Definitions:

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The measure of the efficiency of production, often evaluated as the output per unit of input in a given time period.

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