A price ceiling that is set above the equilibrium price A) ...

[mydiamond]

A price ceiling that is set above the equilibrium price
 
  A) causes suppliers to raise their prices.
  B) is binding.
  C) is non-binding.
  D) creates a shortage.

Question 2

A firm uses labor and capital in its production process, and it faces competitive markets for its inputs and output. The firm's long-run labor demand curve
 
  A) intersects with the short-run labor demand curve in several points.
  B) is exactly identical to its short-run labor demand curve.
  C) is steeper than its short-run labor demand curve.
  D) is flatter than its short-run labor demand curve.

[kiamars2010]

Answer to Question 1

C

Answer to Question 2

D