Answered

In a market with a binding price ceiling, increasing the ceiling price will

A. decrease the surplus
B. decrease the shortage
C. increase the shortage
D. increase the surplus



Answer :

GinnyAnswer

Final answer:

Increasing the price ceiling usually leads to an increase in market surplus due to the surplus of supply caused by a price ceiling below the equilibrium price.


Explanation:

Increasing the price ceiling will typically increase the surplus in the market. A price ceiling below the equilibrium price causes a surplus of supply and decreases overall economic surplus.


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