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:

Discharged

In a legal or financial context, it refers to being freed from a debt, obligation, or liability.

XYZ Corporation

A hypothetical or placeholder name often used to represent a generic, unspecified company or entity in discussions or examples.

Negotiable Instrument

A written promise or order to pay a specific sum of money that can be transferred to another holder.

Indorser

The person who signs and transfers a negotiable instrument, such as a check or promissory note, to another party.