Question

The quantity sold in a market will decrease if the government decreases aA. binding price floor in that market.B. binding price ceiling in that market.C. tax on the good sold in that market.D. All of the above are correct.

Answer 1

Answer: B

Explanation:

Price ceiling is the highest authorized price that could be charged by sellers for a good.

Prices received by sellers will be reduced if government would bring down authorized price in the market.