To affect the market outcome, a price ceiling

A. must be set below the black market price.

B. must be set below the legal price.

C. must be set below the price floor.

D. must be set below the equilibrium price.

Question

To affect the market outcome, a price ceiling

A. must be set below the black market price.

B. must be set below the legal price.

C. must be set below the price floor.

D. must be set below the equilibrium price.

anonymous · Answer

id say D, but i don't really know

anonymous · Answer

i know that if the price ceiling is above equilibrium price it does not affect the market

anonymous · Answer

I'd say D. If P is set to be below the equilibrium price then supply will be too low and demand too high.

anonymous · Answer

D

anonymous · Answer

D

anonymous · Answer

i would prefer option D.