When Is a Price Floor NOT Binding

question 112

Multiple Choice

When is a price floor NOT binding

• A)when the price floor is higher than the equilibrium market price
• B)when the price floor is lower than the equilibrium market price
• C)when people are willing to buy less when the price floor is imposed than they did before
• D)when the government sets it

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Definitions:

Conversion

The unauthorized act of taking someone else's property and converting it to one's own use, violating the owner's rights.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or to approve the terms.

Action

A legal term referring to a civil lawsuit or proceeding initiated to protect a right or redress a grievance.

Revised Article 3

Refers to updates made to Article 3 of the Uniform Commercial Code that governs negotiable instruments, including checks and drafts, in the United States.