the price received by sellers in a market will increase if the government decreases a

A. binding price floor in that market

B. binding price ceiling in that market

C. tax on the goods sold in that market

D. none of the above is correct

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Darryn D'SouzaLv10

25 Aug 2020

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Related questions

A government-imposed price of $12 in this market is an example of a

a. non-binding price ceiling that creates a shortage.

b. non-binding price floor that creates a surplus.

c. binding price floor that creates a surplus.

d. binding price ceiling that creates a shortage

scarletcricket153

1. The language of price controls

Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.

Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.

Statement	Price Control	Binding or Not
Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so.	price ceiling/price floor	binding/non
The government has instituted a legal minimum price of $2.70 per gallon for gasoline.price ceiling/price floor
The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.price ceiling/price floor

Do all buyers benefit from a binding price ceiling?

a. Yes, A binding price ceiling benefits all buyers because it allows them to obtain the good in the legal market.

b. No, A binding price ceiling benefits only some buyers because not all are able to obtain the good in the legal market.

c. No, A binding price ceiling benefits no buyers because sellers are unwilling to sell any of their products.

d. No, A binding price ceiling benefits only some buyers because, although the price is initially lower, it eventually increases to the equilibrium price.

e. No, A binding price ceiling benefits no buyers because they are unwilling to buy any of the products at a price higher than the equilibrium.