Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
The language of price controls
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
The government has instituted a legal minimum price of $2.50 per gallon for gasoline.
Homework Answers
The government prohibits gas stations from selling gasoline for more than $3.40 per gallon. This represents price ceiling and Non-binding because the price is above the equilibrium ,so it is ineffective .
There are many teenagers who would like to work at gas stations ,but they are not hired due to minimum-wage laws. This is price floor and binding because minimum wage is above the equilibrium and therefore represents price floor and binding .
The government has instituted a legal minimum price of $2.50 per gallon for gasoline . This represents price floor and non-bonding.
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Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00...
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits gas stations from selling gasoline for more than $2.80 per gallon. Due to new regulations, gas stations that would like to pay better wages...
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1. The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Price Control Binding or Not Statement Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited...
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Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
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Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits gas stations from selling gasoline for more than $2.80 per gallon. Due to new regulations, gas stations that would like to pay better wages...
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