Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. 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. Statement Price Control Binding or Not The government has instituted a legal minimum price of $1.80 each for donuts. The government prohibits donut shops from selling donuts for more than $1.80 each. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

A binding price floor is set above the equilibrium price as a minimum price

A binding price ceiling is set below the equilibrium price as a maximum price

Equilibrium price is $1.50

a) The government prohibits donut shops from selling donuts for more than $1.10 each = Price ceiling and it is Binding

b) The government has instituted a legal minimum price of $1.80 each for donuts = Price Floor and it is Binding

c) Due to new regulations donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so = Price ceiling and it is non-binding (as firms are wiling to offer higher wages than the minimum wage rate)

Explanation:

Goldman was in favor of the union, while Frick was against.

Explanation:

The Homestead strike was one of the biggest labor conflicts in US history and represented a battle against the top trade union representing technical professionals in the iron and steel industry and major steel companies.

In the face of the events of the strike Goldman was extremely in favor of the claims of the unions, stating that the working class, as an essential member of the means of production, should have their claims met, so that the work could be continued.

Frick, on the other hand, was strongly against the union and claimed that the working class was a weak minority and that minorities are the ones who should be bowing to the majorities and not the other way around.

Goldman's claims are presented in a more credible way, since without the working class the means of production cannot act, being therefore the most important class within the production systems and must be the most privileged class.