Asked by
Mujtaba Ahmed
on Nov 17, 2024
Verified
A price ceiling set above the equilibrium price is not binding.
Not Binding
A term used to describe a situation where a constraint or limit (such as a price ceiling or floor) does not affect the equilibrium outcome of the market.
Equilibrium Price
The market price where the quantity of goods supplied equals the quantity of goods demanded.
- Examine the variance between binding and nonbinding price controls and their ensuing implications.
Verified Answer
SB
Learning Objectives
- Examine the variance between binding and nonbinding price controls and their ensuing implications.