QUESTION 1 1 points Save Anu When a binding price ceiling is

QUESTION 1 1 points Save Anu When a binding price ceiling is imposed on a market foe a good, some people who want to buy the good canmot do so. True Faise QUESTION 2 1ponts Save Answer Figure 7-33 24 21 15 12 6 12 18 24 30 36 4 34 60 66 72 Refer to Figure 7-33. Suppose demand shits such that consumers wish to purchase 12 fewer units at every price. How much is tral suples áis market at-he new equilibrium price? Path: QUESTION 3 1 points Save Antw Suppose that the demand for picture frames is highly inelastic and the supply of picture frames is highly clastic. A tax of S1 per frame levied on picture frames wil increase the price paid by buyers of picture frames by Ob between So 50 and S1. O-less than 5050 SI

Solution

Answer: True.

Explanation: A price ceiling can be defined as a price limit which is imposed by the government upon how high a price can be charged for a product. The price is artificially set lower than the free-market price to ensure things do not get expensive.

Hence, it would lead to create a short-fall, and some people could not buy the good.

Note: Only first question is answered as per Chegg policy. Ask rest of the question separately.

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