Question

    Which of the following statements about a price ceiling is false?

    A The number of buyers who gain from the ceiling is smaller than the original number of buyers. Correct Answer Incorrect Answer
    B The ceiling creates an excess demand. Correct Answer Incorrect Answer
    C The ceiling generates losers as well as gainers. Correct Answer Incorrect Answer
    D To have any effect, the price ceiling must be set at a higher level than the original market price. Correct Answer Incorrect Answer

    Solution

    Statement d is false. To have any effect, the ceiling must be set at a lower level than the original price

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