Economic question on price control?

Consider the market for cheese and, for simplicity, assume that all cheese is of the same quality and is offered for the same price. Suppose that the market equilibrium price for a pound of cheese is $5 and that the government imposes a maximum price of $6 per pound. What kind of policy is this





A. A binding price ceiling





B. A nonbinding price floor





C. None of these policies





D. A nonbinding price ceiling





E. A binding price floor


Economic question on price control?
D. A nonbinding price ceiling





Maximum price (price ceiling) will be ineffective if set above equilibrium.Economic question on price control?
a