If a price ceiling is not binding,then
A)there will be a surplus in the market.
B)there will be a shortage in the market.
C)the market will be less efficient than it would be without the price ceiling.
D)there will be no effect on the market price or quantity sold.

Question

Quizplus · Accepted Answer

If a price ceiling is not binding, it means that the market price is already below the ceiling, so there will be no effect on the price or quantity sold. There will be neither a surplus nor a shortage, and the market will operate normally.

If a Price Ceiling Is Not Binding,then