If a Price Ceiling Is a Binding Constraint on the Market

question 89

Multiple Choice

If a price ceiling is a binding constraint on the market,

• A)the equilibrium price must be below the price ceiling.
• B)there is excess supply.
• C)sellers cannot sell all they want to sell at the price ceiling.
• D)buyers cannot buy all they want to buy at the price ceiling.

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Definitions:

Freelance Paralegal

A paralegal who operates his or her own business and provides services to attorneys on a contract basis. A freelance paralegal works under the supervision of an attorney, who assumes responsibility for the paralegal’s work product.

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Describes benefits or services supplied by an employer to their employees, often including health insurance, pensions, or training.

Group Medical Insurance

A healthcare policy issued to a group of people, offering uniform coverage and benefits to all members, often through an employer.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, without being legally considered employees.