Which of the following observations would be consistent with a binding price ceiling in a market?
a. A smaller quantity of the good is bought and sold after the price ceiling becomes effective than before the price ceiling became effective.
b. A smaller quantity of the good is demanded after the price ceiling becomes effective than before the price ceiling became effective.
c. A larger quantity of the good is supplied after the price ceiling becomes effective than before the price ceiling became effective.
d. All of the above are correct.
Answer: A
Microeconomics
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