A Price Ceiling Is Non-Binding When

question 68

Multiple Choice

A price ceiling is non-binding when:

• A) it is set above the equilibrium price.
• B) it is set below the equilibrium price.
• C) it reduces the output in a market.
• D) it increases the output in a market.

---

Definitions:

Direct Labor

The workforce directly involved in product manufacturing, whose labor is easily traced to the product itself.

Wages of Supervisors

Compensation paid to individuals who oversee and manage the work of others within an organization.

Bottlers

Companies or individuals engaged in the process of packaging beverages, most commonly soft drinks or alcoholic beverages, for distribution and sale.

Manufacturing Costs

Costs directly associated with the manufacture of products, encompassing raw materials, labor, and manufacturing overhead expenses.