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A binding price ceiling causes:

A binding price ceiling causes:

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Answer #1

A price ceiling is generally government intervention in the market and impose restriction on the price that is set by the producers

It is generally set below the equilibrium price

Here the government wants to not rise the price above the given price level

Due to binding price ceiling there is shortage in the markett

The shortage is caused because of excess demand as compared to supply

Hence the answer here is shortage

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