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 ?

Related Mcqs:

The burden of a tax falls more heavily on the buyers in a market when ?

A. both supply and demand are inelastic B. demand is elastic, and supply are inelastic C. both supply and demand are elastic D. demand is inelastic, and supply is elastic...

For which of the following products would the burden of a tax likely fall more heavily on the sellers ?

A. Clothing B. food C. housing D. entertainment...

A binding price ceiling creates?

A. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price B. a surplus C. a shortage D. an equilibrium...

A price floor ?

A. always determines the price at which a good must be sold B. sets a legal maximum on the price at which a good can be sold C. is not a binding constraint if it is set above the equilibrium price D. sets a legal minimum on the price at which a good can be … A price floor ?Read More...

Which of the following is an example of price floor ?

A. the minimum wage B. rent controls C. restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre D. All of these answers are price floors...