If a price ceiling is to accomplish its intended goal of


If a price ceiling is to accomplish its intended goal of lowering overall spending, which of the following should be true?

1. Demand must be relatively price inelastic.

2. Demand must be relative price elastic.

3. Demand must be perfectly inelastic.

4. Demand must be perfectly elastic.

Price elasticity of demand has nothing to do with overall spending.

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Microeconomics: If a price ceiling is to accomplish its intended goal of
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