A price ceiling above $25 per box is not a binding price ceiling in this market. (Economists call a price ceiling that prevents the market from reaching equilibrium a binding price ceiling.)
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The Bonomist - At figure 1: Because the price ceiling is above the market equilibrium, so the price ceiling is not binding AT figure 2: Because the price ceiling is below the
When a price ceiling is non-binding, the ceiling price is _____ the equilibrium price; when a price ceiling is binding, the ceiling price is ______ the equilibrium price. above; above below; above
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