What Could Happen to Render the Price Ceiling Set in the Graph

question 100

Multiple Choice

What could happen to render the price ceiling set in the graph shown non-binding?

• A) Demand could increase, and shift to the right.
• B) Demand could decrease, and shift to the left.
• C) Supply could decrease, and shift to the left.
• D) None of these would cause the price ceiling to be non-binding.

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Definitions:

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, offering limited liability and other advantages.

Disadvantage

A condition or situation that makes it more difficult for someone or something to succeed or be effective.

Limited Liability

A legal structure that limits the amount of money that the owners or shareholders of a business can lose to the amount they invested in the company.

Classified by Ownership

Classified by ownership refers to distinguishing entities based on their ownership structure, such as public, private, or governmental.