The quantity sold in a market will increase if the government a. decreases a binding price floor in that market. b. decreases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. More than one of the above is correct.

Question

Business

Roselyn Larson

12 April, 16:06

The quantity sold in a market will increase if the government a. decreases a binding price floor in that market. b. decreases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. More than one of the above is correct.

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Answers (2)

Know the Answer?

Tori Cunningham · Answer 1

The correct answer is letter "B": decreases a binding price ceiling in that market.

Explanation:

Price ceilings are limits the government imposes on certain goods or services so the prices cannot trespass a certain level. This is to promote fair pricing on the market of a given product. Then, if the price ceiling is set below its current level the supply of the product should increase.

Addison Hurst · Answer 2

C. increases a tax on the good sold in that market.