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If a Price Ceiling Is Set Above the Equilibrium Price

question 102

True/False

If a price ceiling is set above the equilibrium price it is not binding.


Definitions:

Dissolution

The process of formally closing or ending a business or legal entity.

Limited Partnership

A business structure where at least one partner has unlimited liability and at least one partner has liability only up to the amount they have invested.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another party, such as the duty a trustee has to beneficiaries.

Liability

Refers to the state of being legally responsible for something, such as a debt or obligation.

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