Question

suppose a binding price ceiling for cars is introduced. indicate which of the following are possible consequences of the price ceiling: 1. a shortage of cars. select 2. a surplus of cars. select false true 3. sellers adding unne the cars for sale. select 4. sellers reducing the quality of the cars for sale. select 5. long lines of people waiting to buy cars. select 6. black market for cars. select

Explanation:

A binding price - ceiling is set below the equilibrium price. At this lower price, quantity demanded exceeds quantity supplied, leading to a shortage. Sellers may reduce quality to cut costs due to lower prices. Long lines form as buyers compete for the limited quantity available. A black market may emerge as some try to sell at higher - than - ceiling prices. A surplus occurs when price is above equilibrium, not with a price - ceiling.

Answer:

1. True
2. False
3. False (unclear what "adding unne" means, but assuming not a typical consequence)
4. True
5. True
6. True