A binding price floor and binding price ceiling are both lower than the equilibrium price?.
Do you agree with the above statement
Solution:
The given statement is false and, hence, to be disagreed with.
A binding price floor occurs when the government sets a required price on a good or goods at a price above equilibrium.
A binding price ceiling occurs when the government sets a required price on a good or goods at a price below equilibrium.
The given statement is false and, hence, to be disagreed with.
A binding price floor occurs when the government sets a required price on a good or goods at a price above equilibrium.
A binding price ceiling occurs when the government sets a required price on a good or goods at a price below equilibrium.