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Social Studies, 06.03.2020 23:33 GrainLeaf
1 . The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day. 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, car-rental companies that would like to pay better wages in order to hire more workers are prohibited from doing so. The government prohibits car-rental companies from renting out rental cars for more than $36 per day. The government has instituted a legal minimum price of $87 per day for rental cars.
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