An Example of a Binding Price Ceiling Is

question 132

Multiple Choice

An example of a binding price ceiling is:

• A) a minimum wage law that is set above the equilibrium price.
• B) rent control that is set above the equilibrium price.
• C) a black market that sets the price below the equilibrium price.
• D) a minimum wage law that is set below the equilibrium price.
• E) rent control that is set below the equilibrium price.

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Definitions:

Technological Obsolescence

The state of being outdated or no longer used due to the development of newer and more effective technologies.

Global Competition

The competitive dynamics between companies, industries, or countries on an international scale.

Unionized Organizations

Workplaces where employees are members of a union, a collective organization that negotiates wages, working conditions, and benefits on their behalf.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment, salaries, and working conditions.