If a Price Ceiling Is Not Binding,then

question 186

Multiple Choice

If a price ceiling is not binding,then

• A)there will be a surplus in the market.
• B)there will be a shortage in the market.
• C)the market will be less efficient than it would be without the price ceiling.
• D)there will be no effect on the market price or quantity sold.

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Definitions:

Interest-Bearing Note

A debt instrument in which the issuer pays the investor interest on the principal amount, typically at a fixed rate, until maturity.

360-Day Year

A simplified accounting approach that assumes a year has 360 days, used to make interest calculations easier.

Interest Revenue

Income earned from the lending of funds or investment in interest-bearing assets, like loans, bonds, or savings accounts.

360-Day Year

An accounting convention that simplifies interest calculations by assuming there are 360 days in a year.