Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $4.00 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.

StatementPrice ControlBinding or NotThe government has instituted a legal minimum price of $3.70 per gallon for gasoline. The government prohibits gas stations from selling gasoline for more than $4.50 per gallon. Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so.