Examlex
You go online to check the weather to see if you need to bring an umbrella to class. This is an example of which of the classic four functions?
Binding Price Ceiling
A legally established maximum price for a good or service that is lower than the equilibrium price, leading to shortages.
Price Floor
A government or regulatory-imposed minimum price below which a good or service cannot legally be sold, intended to protect producers.
Binding Price Floor
A government-imposed price control that sets a minimum price for a good or service, which is above the equilibrium price, causing a surplus.
Excess Supply
A situation in a market where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at a current price, leading to potential downward pressure on prices.
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