Suppose that, in a competitive market without government regulations the equilibrium price of gasoline is $3.00 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.
Choices for Price Control is:.
A. Price ceiling
B. Price floor
Choices for Binding or Not is:.
A. Binding
B. Non-Binding
Statement Price Control Binding or Not
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum wage law

The government prohibits gas stations from selling gasoline for more than $2.70 per gallon

The government has instituted a legal minimum price of $2.70 per gallon for gasolone.

price floor , binding

price ceiling binding

price floor , non binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price

Because firms are unable to hire workers due to the minimum wage laws., it means it is binding price floor

Equilibrium price is $3 and the maximum price is $2.70 . Thus, it is a binding price ceiling

Equilibrium price is $3 and the minimum price is $2.70 . Thus, it is a binding floor

Q1. Selena will have earned $ 25.00 in interest by the end of the year.

Since interest paid is 5% in simple interest, we can calculate that by using the formula:

Q2. The balance in Suki's account at the end of two years will be $866.2854.

This means that she will have earned $66.2854  in interest.

Since interest is compounded quarterly, Suki will receive interest for 8 periods. The formula for compound interest with more than one interest period per year is:

where

A is the amount at the end of the period

P is the principal

i is interest rate per annum

m is number of compounding periods in a year

n is number of years

Substituting the values in the formula above we get,

Now, we calculate the interest earned by doing \mathbf{CI = A -P}.

Q3. It will take 18 years for the money to double to $100.

Since we need to use the rule of 72, we'll divide 72 by the interest rate to determine the number of years needed to double the investment's value.

So, the number of years is .