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A perfectly competitive market currently has an effective (binding) price ceiling. If the price ceiling was eliminated, which of the following correctly describes the impact on the market?

A

Demand would decrease while supply would increase.

B

Demand would increase while supply would decrease.

C

The quantity demanded would decrease while the quantity supplied would increase.

D

The quantity demanded would increase while the quantity supplied would decrease.

E

The quantity demanded and supplied would both increase.

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