📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      When a price ceiling is imposed in a

      market,
      A a persistent shortage result Correct Answer Incorrect Answer
      B a persistent surplus result Correct Answer Incorrect Answer
      C sellers of the product are made better off Correct Answer Incorrect Answer
      D no one is made better off Correct Answer Incorrect Answer

      Solution

      If a price suddenly begins to rise too rapidly, the government can stop the increase by setting a price ceiling in the market. The price ceiling is a maximum price. Of course, the ceiling creates problems of its own — chronic excess demand.

      Practice Next
      ask-question