If the Equilibrium Price for Some Product Is $1000,a Price

question 10

Multiple Choice

If the equilibrium price for some product is $1000,a price ceiling of $1200 will result in

• A)the same general effects as a price floor of $1200.
• B)the same general effects as an administered price of $1200.
• C)the same general effects as a price ceiling of $600.
• D)massive surpluses of the good.
• E)no effects because the price ceiling is not binding at that price.

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