contestada

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.

Respuesta :

Answer:

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

Explanation:

Answer:

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.