For a price ceiling to be binding constraint on the market the govern – McqOptions

MCQOPTIONS

1.	For a price ceiling to be binding constraint on the market the government must set it ?
A.	above the equilibrium price
B.	below the equilibrium price
C.	precisely at the equilibrium price
D.	at any price because all price ceilings are binding constraints
Answer» C. precisely at the equilibrium price

Discussion

No Comment Found

Related MCQs

<p> Within the supply and demand model, a tax collected from the buyers of a good shifts the ?</p>
<p> Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?</p>
<p> A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?</p>
<p> Which of the following statements about the burden of a tax is correct ?</p>
<p> Within the supply and demand model, a tax collected from the sellers of a good shift the ?</p>
<p> When a tax is collected from the buyers in a market, ?</p>
<p> The burden of a tax falls more heavily on the buyers in a market when ?</p>
<p> Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?</p>
<p> The burden of a tax falls more heavily on the sellers in a market when ?</p>
<p> Which of the following takes place when a tax is placed a good ?</p>