A price ceiling set below the market clearing price will tend to ...

[jwb375]

A price ceiling set below the market clearing price will tend to cause which of the following?
 
  A) a surplus
  B) a shortage
  C) an increase in demand
  D) a reduction in supply

Question 2

Refer to the above figure. Production at Point F
 
  A) is not attainable given the underlying assumptions of the production possibilities curve (PPC).
  B) would not be desirable.
  C) can only be attained by giving up Point E.
  D) can be attained only if a society desired more goods and services.

[coreycathey]

Answer to Question 1

B

Answer to Question 2

A