Questions
ECON1-TTh Chapter 6 Assignment
Single choice
Which of the following would not be a result of a binding price ceiling on child care?
Options
A.an increase in the quantity of child care supplied
B.a quantity of child care demanded greater than quantity supplied
C.a decrease in quality of care
D.a lower price of childcare
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Step-by-Step Analysis
To tackle this question, start by recalling what a binding price ceiling does in a competitive market: it sets the maximum legal price below the market equilibrium, which creates a shortage where quantity demanded exceeds quantity supplied.
Option 1: an increase in the quantity of child care supp......Login to view full explanationLog in for full answers
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