If a price ceiling is binding: A. the equilibrium price is above the ceiling and there will be a shortage B. the equilibrium price is above the ceiling and there will be a surplus C. the equilibrium price is below the ceiling and there will be a surplus D. the equilibrium price is below the ceiling and there will be a shortage

If a price ceiling is leading to a shortage then: A. the equilibrium price must be above the price ceiling B. supply must be greater than demand C. the equilibrium price must be below the price ceiling D. market forces will restore the price to equilibrium

If a price ceiling is not binding,a.the equilibrium price is below the ceiling.b.it has no legal enforcement mechanism.c.the equilibrium price is above the ceiling.d.people must voluntarily agree to abide by it.

Question 10If a price ceiling is imposed below the equilibrium price:1 pointsupply will increase above what it would be otherwise.demand will decrease below what it would be otherwise.the quantity supplied will be higher than it would be otherwise.the quantity demanded will be higher than it would be otherwise.

If the market price is above the equilibrium price:Multiple Choicea surplus will result and consumers will bid prices up.a shortage will occur and producers will produce more and lower prices.producers will make extremely high profits.a surplus will occur and producers will produce less and lower prices.

A shortage will occur whenever:Multiple Choicethe supply curve is upward sloping.price is set above the equilibrium price.price is set below the equilibrium price.prices are decreasing.