Answer:
A binding price floor is set above the equilibrium price as a minimum price
A binding price ceiling is set below the equilibrium price as a maximum price
Equilibrium price is $1.50
a) The government prohibits donut shops from selling donuts for more than $1.10 each = Price ceiling and it is Binding
b) The government has instituted a legal minimum price of $1.80 each for donuts = Price Floor and it is Binding
c) Due to new regulations donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so = Price ceiling and it is non-binding (as firms are wiling to offer higher wages than the minimum wage rate)
Explanation:
Answer:
A letter and a word corresponding to it
Explanation:
Answer: the correct answer is D Hold the ordinance unconstitutional, because it violates the Free Exercise Clause.
Explanation: The Free Exercise Clause basically states prohibition to the Government from acting in a way that interferes with the free exercise of Religion.
The correct answer is: "variable loan can increase dramatically
".
The fixed rate is slightly higher but it is safer in the sense that ensures an stable interest rate throughout the whole loan period.
On the other hand, variable rates are subject to market movements. It could be the case that a sudden and large increase on interest rates in the international markets, directly affects your repayment schedule increasing abruptly the interest amount to be repaid at each instalment.
