If a Price Ceiling Is Not Binding,then

question 186

Multiple Choice

If a price ceiling is not binding,then

• A)there will be a surplus in the market.
• B)there will be a shortage in the market.
• C)the market will be less efficient than it would be without the price ceiling.
• D)there will be no effect on the market price or quantity sold.

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Definitions:

Preincorporation Contract

An agreement made by individuals before the formation of a corporation, which the corporation may later adopt or ratify.

Promoter

An individual or organization that helps to initiate and plan significant events, businesses, or movements.

Ratifies

The act of formally confirming or approving a decision or agreement, making it officially valid.

Preincorporation Contract

An agreement entered into on behalf of a corporation before it is legally formed.