For a price ceiling to be binding, it
a. cannot be determined.
b. is the same as the equilibrium price.
c. must be above the equilibrium price.
d. must be below the equilibrium price.
d. must be below the equilibrium price.
You might also like to view...
The price of a good is the most important determinant of the supply of that good
a. True b. False Indicate whether the statement is true or false
When a tariff is imposed, the demand curve for the domestic good
A. shifts downward and to the right. B. shifts upward and to the right. C. shifts upward and to the left. D. shifts downward and to the left.
GM decides to build a new plant using retained earnings. All of the following are true except
A. GM is engaging in saving on behalf of its shareholders. B. GM stock appreciates in value. C. GM is avoiding experiencing opportunity costs. D. GM's tangible capital will increase as a result.
The monopolistically competitive seller's demand curve will become more elastic with
A. a smaller number of competitors. B. a greater degree of product differentiation. C. a larger number of competitors. D. more significant barriers to entry.