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Economics
MEDIUM
ENGLISH
Economics
Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
Correct answer
B
A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
Option B
C
There will be a shortage of petrol
Option C
D
There will be surplus of petrol
Option D
Correct answer: A
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