If the government imposes a binding price ceiling in a market, then the producer surplus in that market will increase.

If the government removes a binding price ceiling from a market, then the price paid by buyers will

A、

increase, and the quantity sold in the market will increase.

increase, and the quantity sold in the market will decrease.

decrease, and the quantity sold in the market will increase.

decrease, and the quantity sold in the market will decrease.

If a price ceiling is not binding, then it will have no effect on the market.

What happens to the total surplus in a market when the government imposes a tax?

A、Total surplus increases by the amount of the tax.
B、Total surplus increases but by less than the amount of the tax.
C、Total surplus decreases.
D、Total surplus is unaffected by the tax.

A price ceiling set above the equilibrium price causes a surplus in the market.