Which of the following statements best describes price ceilings?
a. A price ceiling that is set at a relatively high level is nonbinding.
b. A price ceiling that is set at a relatively low level is nonbinding.
c. A price ceiling that is set at a relatively high level will have no practical effect unless the equilibrium price falls below the price ceiling.
d. A price ceiling that is set at a relatively low level will have no practical effect unless the equilibrium price soars high enough to exceed the price ceiling.
a. A price ceiling that is set at a relatively high level is nonbinding.
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A legal limit on the amount of sugar imported into the United States is
A) a tariff. B) a subsidy. C) a quota. D) a voluntary import restriction.
Because of the accounting techniques used, the balance of payments shows that debits equal credits only if exports equal imports
a. True b. False
A government budget surplus may enable all of the following except
A. A decrease in the money supply. B. A decrease in taxes. C. An increase in income transfers. D. An increase in expenditures on goods and services.
Other things the same, as the price level rises, the real value of a dollar
a. rises, and interest rates rise. b. rises, and interest rates fall. c. falls, and interest rates rise. d. falls, and interest rates fall.