1. The language of price controls

Imagine that, in a competitive market without government regulations, the equilibrium price of petrol is $3.00 per litre.

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.

1. The government prohibits petrol stations from selling petrol for more than $3.40 per litre. Price ceiling Binding

Is this question Price ceiling or Price floor

Is it Binding or Non-binding

2. The government has instituted a legal minimum price of $3.40 per litre for petrol.

Is this question Price ceiling or Price floor

Is it Binding or Non-binding

3.There are many teenagers who would like to work at petrol stations, but they are not hired due to minimum-wage laws.

Is this question Price ceiling or Price floor

Is it Binding or Non-binding