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Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. The government has instituted a legal minimum price of $8 each for hamburgers.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $8 each.
c. There are many teenagers who would like to work at fast-food restaurants, but they are not hired due to minimum-wage laws
Answers: 2
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Indicate whether each of the statements is an example of a price ceiling or a price floor and whethe...
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