If a Price Above Equilibrium Is Imposed on a Market

question 59

Multiple Choice

If a price above equilibrium is imposed on a market, welfare will increase when the price control is lifted. If a price control is below equilibrium and then is repealed and allowed to rise to equilibrium, welfare in the system will increase.

• A)The first statement is true and the second is false.
• B)The first statement is false and the second statement is true.
• C)Both statements are false.
• D)Both statements are true.

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