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What is the economic effect of price​ ceilings?  Choose one. A) Resources will be allocated efficiently B) There are no economic effects C) An effective price ceiling will lead to a surplus D) An effective price ceiling will lead to a shortage.

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Paramjeet Chawla
Paramjeet ChawlaLv8
22 Sep 2020
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Related questions

If a price ceiling is not binding, then
a. there will be a surplus in the market.
b. there will be a shortage in the market.
c. the market will be less efficient than it would be without the price ceiling.
d. there will be no effect on the market price or quantity sold

If a price ceiling is to be effective, it should be set

 

a. Below the equilibrium price, and it will create a market surplus.

b. Below the equilibrium price, and it will create a market shortage.

c. Above the equilibrium price, and it will create a market shortage.

d. Above the equilibrium price, and it will create a market surplus.

If a price ceiling is not binding, then: 
 
(i) there will be a surplus in the market.
(ii) there will be a shortage in the market.
(iii) the market will be less efficient than it would be without the price ceiling.
(iv) there will be no effect on the market price or quantity sold. 

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