Asked by
TastyKrat YaBoy
on Dec 17, 2024
Verified
Which of the following causes the price paid by buyers to be different than the price received by sellers?
A) Binding price floor
B) Binding price ceiling
C) Tax on the good
D) Nonbinding price control
Binding Price Ceiling
A binding price ceiling is a government-imposed limit on the price charged for a product that is set below the market equilibrium price, leading to shortages.
Tax
A financial charge imposed by the government, required for the support of the government and public services.
- Evaluate the repercussions of taxes on market balance and the responsiveness of prices.
- Understand the impact of price controls and taxes on market shortages and surpluses.
Verified Answer
CD
Learning Objectives
- Evaluate the repercussions of taxes on market balance and the responsiveness of prices.
- Understand the impact of price controls and taxes on market shortages and surpluses.