If a Price Ceiling Is Not Binding,then

question 121

Multiple Choice

If a price ceiling is not binding,then

• A)the equilibrium price is above the price ceiling.
• B)the equilibrium price is below the price ceiling.
• C)it has no legal enforcement mechanism.
• D)None of the above is correct because all price ceilings must be binding.

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Definitions:

Notice of Dishonor

A formal notification indicating that a negotiable instrument, such as a check or bill of exchange, has been presented for payment and refused.

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier or teller, guaranteeing payment to the payee.

Primarily Liable

Being the first or main party responsible for fulfilling a financial or legal obligation.

Fraud in the Factum

Refers to a specific type of fraud where a person is deceived into signing a document not knowing its true nature or essence.