Which of the Following Observations Would Be Consistent with the Imposition

question 190

Multiple Choice

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

• A)a smaller quantity of the good is bought and sold.
• B)a smaller quantity of the good is demanded.
• C)a larger quantity of the good is supplied.
• D)the price rises above the previous equilibrium.