If a Price Ceiling Is a Not a Binding Constraint

question 18

Multiple Choice

If a price ceiling is a not a binding constraint, then the:

• A) actual price will be below the price ceiling
• B) actual price will be above the price ceiling
• C) equilibrium price will equal the price ceiling
• D) actual price will equal the price ceiling

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Definitions:

Embargoes

Governmental orders that restrict commerce and trade with specified countries or the exchange of specific goods.

Repudiates

To refuse to accept or be associated with a contract or agreement, effectively rejecting its validity.

Recovery

The process of regaining possession or control of something lost or taken away, or the return to a normal state of health, mind, or strength.

Eventide Fishing Tours

Recreational activities or services that offer fishing experiences during the evening or twilight hours.