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Why do shortages develop under a binding price ceiling? a) O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. Ob) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market. O A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. Oe) A ceiling encourages sellers to produce more of the product.

Why do shortages develop under a binding price ceiling? a) O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. Ob) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market. O A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. Oe) A ceiling encourages sellers to produce more of the product.

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section5.2: Cloting Choices
Problem 1R
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Why do shortages develop under a binding price ceiling? O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. O b) A ceiling makes the price so low that the quantity demanded exceeds the b) quantity supplied in the legal market. Og A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. O e) A ceiling encourages sellers to produce more of the product. e)
Transcribed Image Text:Why do shortages develop under a binding price ceiling? O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. O b) A ceiling makes the price so low that the quantity demanded exceeds the b) quantity supplied in the legal market. Og A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. O e) A ceiling encourages sellers to produce more of the product. e)
Refer to the accompanying table to answer the next six questions. Quantity of Quantity of Monthly Rent Apartment Demanded Apartments Supplied $1,500 $1,550 $1,600 $1,650 136,500 78,100 112,750 83,760 107,000 100,100 98,450 87,900 94,250 $1,700 98,450 $1,750 $1,800 95,000 92,800 118,500 125,600
Transcribed Image Text:Refer to the accompanying table to answer the next six questions. Quantity of Quantity of Monthly Rent Apartment Demanded Apartments Supplied $1,500 $1,550 $1,600 $1,650 136,500 78,100 112,750 83,760 107,000 100,100 98,450 87,900 94,250 $1,700 98,450 $1,750 $1,800 95,000 92,800 118,500 125,600
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