If a price ceiling is a binding constraint on a market,then
A)the equilibrium price must be below the price ceiling.
B)the quantity supplied must exceed the quantity demanded.
C)sellers cannot sell all they want to sell at the price ceiling.
D)buyers cannot buy all they want to buy at the price ceiling.

Question

Quizplus · Accepted Answer

A binding price ceiling is set below the equilibrium price, causing a shortage where the quantity demanded exceeds the quantity supplied, meaning buyers cannot purchase all they want.

If a Price Ceiling Is a Binding Constraint on a Market,then