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.

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Definitions:

Adventurousness

The willingness or tendency to take risks and try new or challenging experiences.

Negative Correlation

When one variable is high, the other variable tends to be low.

High

A state of elevated status, rank, or a measure, often referring to measurements, quantities, or feelings of euphoria.

Correlation

A mutual relationship or connection between two or more things where a change in one is associated with a change in the other.