A. above the equilibrium price
B. below the equilibrium price
C. precisely at the equilibrium price
D. at any price because all price ceilings are binding constraints
Correct Answer: below the equilibrium price ✔
Last Updated: June 18, 2019
Related MCQs
- Which of the following statements about the burden of a tax is correct ?
- A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
- When a tax is collected from the buyers in a market, ?
- Within the supply and demand model, a tax collected from the sellers of a good shift the ?
- Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?
- Which of the following is an example of price floor ?
- Which side of the market is more likely to lobby government for a price floor ?
- A price floor ?
- A binding price ceiling creates?
- For which of the following products would the burden of a tax likely fall more heavily on the sellers ?
- The burden of a tax falls more heavily on the buyers in a market when ?
- The burden of a tax falls more heavily on the sellers in a market when ?
- Which of the following takes place when a tax is placed a good ?
- Within the supply and demand model, a tax collected from the buyers of a good shifts the ?
- Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
- The surplus caused by a binding price floor will be greatest if ?
- Which of the following statements about a binding price ceiling is true ?
- Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?