Asked by
Jacob punte
on Dec 17, 2024
Verified
Which of the following causes a shortage of a good?
A) Binding price floor
B) Binding price ceiling
C) Tax on the good
D) Nonbinding price control
Binding Price Ceiling
A limit imposed by the government on how high a price can be charged for a good or service, which is set below the equilibrium price, causing a shortage.
- Comprehend how market shortages and surpluses are influenced by the imposition of price controls and taxes.
Verified Answer
AM
Learning Objectives
- Comprehend how market shortages and surpluses are influenced by the imposition of price controls and taxes.