When Is a Price Floor Binding

question 149

Multiple Choice

When is a price floor binding

• A)when it is higher than the equilibrium market price
• B)when it is lower than the equilibrium market price
• C)when it is equal to the equilibrium market price
• D)when it is set by the government

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Definitions:

Organisational Design

The process of shaping an organization's structure and roles to align with its objectives, strategies, and environment.

Burns and Stalker

An approach to organizational theory that contrasts mechanistic vs. organic structures and emphasizes the importance of an organization's ability to adapt to its environment.

Mechanistic

Pertaining to an organizational structure characterized by clear hierarchies, rigid procedures, and a focus on efficiency and predictability, suitable for stable, unchanging environments.

Adaptive Organisations

Adaptive organisations operate with a minimum of bureaucratic features and encourage worker empowerment and teamwork.