Which of the following is a difference between a binding and a not binding price ceiling?
a. A binding price ceiling causes a shortage in the market, while a not binding price ceiling causes a surplus in the market.
b. A binding price ceiling causes a surplus in the market, while a not binding price ceiling causes a shortage in the market.
c. A binding price ceiling causes a shortage in the market, while a not binding price ceiling does not affect market behavior.
d. A binding price ceiling causes a surplus in the market, while a not binding price ceiling does not affect market behavior.
c
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A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows
A) a direct relationshi
Suppose that in 2016, all prices in the economy double and that all wages and salaries also double. In 2016 you
A) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same. B) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services. C) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services. D) cannot determine whether you are better off or worse off than you were in 2015, because the purchasing power of your salary cannot be determined.