A Nonbinding Price Ceiling

question 269

Multiple Choice

A nonbinding price ceiling
i) causes a surplus.
Ii) causes a shortage.
Iii) is set at a price above the equilibrium price.
Iv) is set at a price below the equilibrium price.

• A) i) only
• B) iii) only
• C) i) and iii) only
• D) ii) and iv) only

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