Which of the Following Describes a Difference Between a Price

question 240

Multiple Choice

Which of the following describes a difference between a price support and a price ceiling?

• A) A price support creates a deadweight loss while a price ceiling does not.
• B) A price ceiling is a regulated price while a price support is a regulated quantity.
• C) A price support decreases the quantity while a price ceiling does not.
• D) A price ceiling increases the price above the equilibrium price while a price support does not.
• E) A price support attempts to raise the price above the equilibrium price while a price ceiling does not.