Answered

Get detailed and accurate answers to your questions on IDNLearn.com. Our experts provide timely and precise responses to help you understand and solve any issue you face.

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

Sagot :

GinnyAnsweridn

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.


Learn more about Price Ceiling Impact on Market Outcome here:

https://brainly.com/question/38066992


We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For clear and precise answers, choose IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.