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If a price ceiling is a binding constraint on a market, then

A. the quantity supplied must exceed the quantity demanded.
B. buyers cannot buy all they want to buy at the price ceiling.
C. the equilibrium price must be below the price ceiling.
D. sellers cannot sell all they want to sell at the price ceiling.

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Kristelle Balando
Kristelle BalandoLv10
20 Sep 2020

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Related questions

Why do shortages develop under a binding price ceiling?

1. It encourages sellers to produce more of the product

2. It encourages buyers to purchase less of the product

3. It makes the price so low that the quantity demanded exceeds the quantity supplied on the black market

4. It makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market

5. It encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded.

Why do shortages develop under a binding price ceiling?

a. It makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market.

b. It encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded.

c. It encourages buyers to purchase less of the product.

d. It encourages sellers to produce more of the product.

If, at the current price, there is a surplus of a good, then 
 
a. sellers are producing more than buyers wish to buy. 
b. the market must be in equilibrium. 
c. the price is below the equilibrium price. 
d. quantity demanded equals quantity supplied.

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