When a Binding Price Ceiling Is Imposed on a Market

question 193

Multiple Choice

When a binding price ceiling is imposed on a market,

• A)price no longer serves as a rationing device.
• B)the quantity supplied at the price ceiling exceeds the quantity that would have been supplied without the price ceiling.
• C)all buyers benefit.
• D)All of the above are correct.

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Definitions:

FM Radio Station

A broadcast station that uses frequency modulation to provide radio programming to the public within a certain geographic area.

Excludable

A feature of a product or service that enables the owner to restrict its use by others without obtaining consent.

Rival In Consumption

Describes a good or service whose consumption by one individual prevents simultaneous consumption by other individuals, making it exclusive in nature.

Common Resource

A resource like fish stocks, forests, or clean air, that provides users with tangible benefits but is susceptible to overuse and depletion.