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horsena [70]
3 years ago
10

Suppose that the market equilibrium price for a good is $3.00. A nonbinding price ceiling in this market will result in a price

set Choose one:A. below $3.00.B. above $3.00.C. More information is needed to determine the answer.D. at $3.00.

Business
2 answers:
ELEN [110]3 years ago
8 0

Answer:

A) below $3.00

Explanation:

In order for a price ceiling to be binding, it must be set below the market's equilibrium price. A binding price ceiling results in a supply shortage because the total quantity demanded will increase, while the total quantity supplied will decrease. The economic loss resulting from the shortage is known as deadweight loss.  

The deadweight loss is represented on the attached graph as the area below the demand curve and above the supply curve, and left of the equilibrium price.

Nina [5.8K]3 years ago
4 0

Answer:

above $3.00

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. A price ceiling is non binding if it set above equilibrium price. So price above $3 is non binding. A non binding price ceiling has no effect on the market price.

Price ceiling is binding if it is set below equilibrium price.

Equilibrium price is where the demand and supply curve intersects.

I hope my answer helps you

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What is the Current Ratio given the following information?
azamat

Answer:

The correct option is B that is 0.45

Explanation:

Computing the Current Ratio with the formula which is as:

Current Ratio (CR)  = Current Assets (CA) / Current Liabilities (CL)

where

Current Ratio (CA) is $477.50

Current Liabilities (CL) is $1075

Putting the values in the above formula of Current Ratio (CR):

= $477.50 / $1075

= 0.444 or 0.45

Note 1: Inventory will not be included while computing the current ratio, as it is already been added in the current assets. Therefore, there is no need of adding it twice in the Assets.

Note 2: This is the correct formula for computing the current ratio and I computed the same with the given information, so it 0.45 is the correct answer.

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Individuals who give up looking for work because they don't feel that there are good prospects of finding a job are known as:
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Dividend Company is a are company that as been profitable and growing for a long time. In the most recent shareholders report, t
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WACC. Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will
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