To Say That a Price Ceiling Is Binding Is to Say

question 111

Multiple Choice

To say that a price ceiling is binding is to say that the price ceiling

• A)results in a shortage.
• B)is set below the equilibrium price.
• C)causes quantity demanded to exceed quantity supplied.
• D)All of the above are correct.

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Definitions:

Properties

The fundamental rules and characteristics that define mathematical operations, such as commutative, associative, and distributive properties.

Logarithms

The inverse operation to exponentiation, indicating the power to which a base number must be raised to obtain another number.

Approximate

To approximate means to find a value or answer that is close to the exact one, but not exactly it, often used when an exact solution is not necessary or possible.

Function

A pairing between a selection of inputs and a conglomeration of permissible outputs, where the rule is that each input is directly linked to a unique output.