Select the correct type of price control law described and then choose from the multiple choice when it is binding or nonbinding.

1. Usury law, Unilateral laws, Minimum wage laws and Market-oriented laws are laws that set a price maximum in the financial capital markets. When is it a binding ceiling?

• The equilibrium interest rate is higher than the law permits.
• It is always binding
• it is never binding
• The equilibrium interest rate is lower than the law permits

2. Are laws that set a wage minimum in the labor market. When is it a nonbinding floor?

• It is always nonbinding.
• The equilibrium wage rate is above the minimum wage rate.
• The equilibrium rate is below the minimum wage rate.
• It is never nonbinding.