WebA government-imposed price of $24 in this market is an example of a binding price ceiling that creates a shortage. non-binding price ceiling that creates a shortage. binding price floor that creates a surplus. non-binding price floor that creates a surplus. Show transcribed image text Expert Answer 100% (16 ratings)

Solved This figure shows the market demand and market supply - Chegg

WebA binding price ceiling imposed on a good leads to excess demand for this good. True. Which of the following is an example of a price floor? A. Rent controls B. Minimum … WebMar 24, 2024 · For example, if the government sets a price floor of $10 per gallon on gasoline, it would be illegal for gas stations to charge less than this amount. So, in … inayawan police station contact number

What is a binding price floor? – KnowledgeBurrow.com

WebReal-Life Examples of Binding Price Floors A binding price floor is a government-imposed minimum price that must be paid for a particular good or service. This price floor is set above the equilibrium price, which is the price at which the quantity demanded by consumers equals the quantity supplied by producers. WebPerhaps the best-known example of a price floor is the minimum wage, which is based on the normative view that someone working full time ought to be able to afford a basic standard of living. The federal minimum wage at the end of 2014 was $7.25 per hour, … 2. We know that price has now increased and quantity demanded has now … $7 an hour. It has to be at least $7 an hour, so this right over here is a price floor. … WebA government-imposed price of $12 in this market is an example of a a. nonbinding price ceiling that creates a shortage. b. binding price ceiling that creates a shortage. c. nonbinding price floor that creates a surplus. d. binding price floor that creates a surplus. Expert Answer The right response is b. Restricting cost cieling that makes a lack. inayawan cebu city cebu