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igor_vitrenko [27]
3 years ago
10

Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.

Business
1 answer:
Rina8888 [55]3 years ago
4 0

Answer:

Price ceiling binding

price floor binding

Price floor binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling

The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor

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