Asked by Alexandre Al Mokhtari on Jul 17, 2024
Verified
A binding price ceiling may not help all consumers, but it does not hurt any consumers.
Binding Price Ceiling
A government-imposed limit on the price of a good or service that is set below the market equilibrium, leading to shortages.
Consumers
Individuals or entities that use, or consume, goods and services produced within an economy, driving demand and market dynamics.
- Understand the concept of price ceilings and their effects on markets.
Verified Answer
AS
Abdul SameerJul 19, 2024
Final Answer :
False
Explanation :
A binding price ceiling, set below the equilibrium price, can lead to shortages as demand exceeds supply, which may hurt some consumers who cannot purchase the product at all.
Learning Objectives
- Understand the concept of price ceilings and their effects on markets.
Related questions
(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and ...
Inefficient Allocations of Goods to Consumers Often Result From ...
The Harmful Effect of a Price Floor to ________ Is ...
If the Equilibrium Price of Gasoline Is $3 ...
An Example of a ________ Would Be the Government Setting ...