To Be Binding,a Price Ceiling Must Be Set at a Price

question 120

Multiple Choice

To be binding,a price ceiling must be set at a price _____ the equilibrium price.

• A)lower than
• B)higher than
• C)the same as
• D)Any price ceiling is binding.

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Definitions:

Preferred Provider Organizations

Health insurance plans that offer members lower copayments if they use doctors, hospitals, and other healthcare providers that belong to the plan's network.

Deductible

A specific amount of money that an insured individual must pay before an insurance company pays a claim, commonly used in health, auto, and home insurance policies.

Coinsurance

A form of insurance coverage in which the insured party and the insurer share the costs of covered healthcare services according to a predetermined percentage.

Monopsony Power

A market situation where there is only one buyer for a product or service, giving that buyer significant control over the market.