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14 July, 16:06

To say that a price ceiling is binding is to say that the price ceiling a. results in a shortage. b. is set below the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.

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  1. 14 July, 19:03
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    A price ceiling is set below the equilibrium price.

    Explanation:

    A price ceiling is set below the equilibrium price. Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result.
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