Which of the following statements is true of active secondary markets?

a. They can undo some of the intended effects of a price ceiling
b. They exacerbate excess demand for a product
c. They exacerbate excess supply for a product
d. All of the above

They can undo some of the intended effects of a price ceiling-A

Explanation: An active secondary market also called stock market is where investors,( individuals and corporate) constantly buy and sell securities they already own. Apart from stock, l mutual funds and bonds on sold in secondary markets.

In an active secondary market, Price ceiling can distort the market by creating excess demand, the secondary market then prevents market forces from raising the price and eliminating excess demand.

Activities in the secondary market typically occurs when those goods bought at cheaper price sell to those were not lucky to buy at a higher price.

if the ceiling price is above the equilibrium price? It doesn't affect the market at all because buyers will still buy at the price the consumers are selling.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101