A Nonbinding Price Ceiling

question 269

Multiple Choice

A nonbinding price ceiling
i) causes a surplus.
Ii) causes a shortage.
Iii) is set at a price above the equilibrium price.
Iv) is set at a price below the equilibrium price.

• A) i) only
• B) iii) only
• C) i) and iii) only
• D) ii) and iv) only

---

Definitions:

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.

Sole Proprietor

An individual who owns and operates a business alone, bearing unlimited liability for the business's debts and obligations.

Ease Of Formation

The relative simplicity or complexity involved in establishing a new company or business entity.

Treasury Department

A government's division responsible for managing its finances, including producing currency, collecting taxes, and managing the national debt.