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Suppose a market is currently in equilibrium and the government sets a price ceiling at a price above equilibrium. Then we can say that the
Suppose a market is currently in equilibrium and the government sets a price ceiling at a price above equilibrium. Then we can say that the ceiling is binding and there will be a shortage. the ceiling is non-binding and there will be a shortage. the ceiling is non-binding and there will be no shortage nor surplus. the ceiling is binding and there will be a surplus
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