If a Price Ceiling Is a Binding Constraint on the Market

question 140

Multiple Choice

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

• A) the equilibrium price must be below the price ceiling
• B) the equilibrium price must be above the price ceiling
• C) the forces of supply and demand must be in equilibrium
• D) it will have no effect on supply or demand

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Definitions:

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A hormone and neurotransmitter often associated with social bonding, trust, and relationship-building.

Love Potion

A mythical or fictional substance believed to cause the person who consumes it to fall deeply in love with someone else.

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Behavior intended to protect oneself from harm or threat, often manifested through physical or verbal actions.