Which of the Following Is True of Price Ceilings

question 56

Multiple Choice

Which of the following is true of price ceilings?

• A) Firms must charge the price established as a price ceiling.
• B) A ceiling price below the free- market equilibrium price is not binding.
• C) If the ceiling price is set above the free- market equilibrium price it will have no effect on the market.
• D) With a non- binding ceiling price an excess demand for the product will develop.
• E) With a binding ceiling price a surplus of the commodity will develop.

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Definitions:

National Mediation Board

A federal agency that facilitates and mediates labor-management relations within the United States' railroad and airline industries.

Railway Labor Act

A 1926 United States federal law that governs labor relations in the railway and airline industries, aiming to avoid service disruptions.

Third Party Dispute

A conflict involving an external party to assist or decide in the resolution process between two other parties, commonly found in mediation or arbitration scenarios.

Conventional Arbitration

A form of arbitration where the arbitrator has complete discretion to determine the outcome, without being required to follow specific legal precedents.