Asked by
Kassy Hinojosa
on Nov 17, 2024
Verified
A price ceiling set below the equilibrium price is nonbinding.
Nonbinding
Describes a regulation or condition that does not restrict the actions or choices of the individuals or entities it applies to.
Equilibrium Price
The market price at which the quantity of goods supplied equals the quantity of goods demanded.
- Differentiate clearly between the aspects and repercussions of binding and nonbinding price controls.
Verified Answer
NV
Learning Objectives
- Differentiate clearly between the aspects and repercussions of binding and nonbinding price controls.