Q
Which of the following statements about a binding price ceiling is true ?
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A
A. The shortage created by the price ceiling is greater in the short ran than in the long run.
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B
B. The surplus created by the price ceiling is greater in the short run than in the long run
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C
C. The surplus created by the price ceiling is greater in the long run than in the short run
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D
D. The shortage created by the price ceiling is greater in the long run than in the short run
Correct Answer:
D. D. The shortage created by the price ceiling is greater in the long run than in the short run