The quantity sold in a market will increase if the government a. decreases a binding price floor in that market. b. decreases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. More than one of the above is correct.

Question

Kailey Obrien

Business

11 June, 03:03

The quantity sold in a market will increase if the government a. decreases a binding price floor in that market. b. decreases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. More than one of the above is correct.

+1

Answers (2)

Know the Answer?

Keon Avery · Answer 1

C. increases a tax on the good sold in that market.

Natalie Mason · Answer 2

The correct answer is letter "B": decreases a binding price ceiling in that market.

Explanation:

Price ceilings are limits the government imposes on certain goods or services so the prices cannot trespass a certain level. This is to promote fair pricing on the market of a given product. Then, if the price ceiling is set below its current level the supply of the product should increase.