For a price ceiling to be binding constraint on the market the government must set it ?

Related Mcqs:

Which of the following statements about a binding price ceiling is true ?

A. The shortage created by the price ceiling is greater in the short ran than in the long run. B. The surplus created by the price ceiling is greater in the short run than in the long run C. The surplus created by the price ceiling is greater in the long run than in the … Which of the following statements about a binding price ceiling is true ?Read More...

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 ?

A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint. B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint. C. There will be a shortage of petrol D. There will be surplus of petrol...

When a tax is collected from the buyers in a market, ?

A. the tax burden falls most heavily on the buyers. B. the buyers bear the burden of the tax C. the sellers bear the burden of the tax D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers...

A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?

A. falls more heavily on sellers B. falls entirely on sellers C. falls more heavily on buyers. D. is evenly distributed between buyers and sellers....

Which of the following statements about the burden of a tax is correct ?

A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected C. The distribution of the burden … Which of the following statements about the burden of a tax is correct ?Read More...