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A price floor is binding in a market when it is set above the equilibrium price, leading to a surplus of goods. Factors that determine whether a price floor is binding include the level at which the price floor is set, the elasticity of supply and demand for the product, and the presence of substitutes or complements in the market.
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What factors determine whether a product has elastic, inelastic, or unit-elastic demand in the market?
The factors that determine whether a product has elastic, inelastic, or unit-elastic demand in the market include the availability of substitutes, the necessity of the product, the proportion of income spent on the product, and the time frame considered.
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What factors determine the market structure of a particular industry?
there are four factors that determines the market structure of a particular industry they are: number of buyers and sellers information and mobility the nature of product. entry and exit of a firm from market.
How do you determine the value of cryptocurrency in the market?
The value of cryptocurrency in the market is determined by factors such as supply and demand, market sentiment, adoption rates, regulatory developments, and overall market conditions. Traders and investors analyze these factors to make informed decisions on buying and selling cryptocurrencies, which ultimately influences their market value.
What factors determine the demand for a normal good in the market?
The demand for a normal good in the market is determined by factors such as consumer income, price of the good, prices of related goods, consumer preferences, and advertising and marketing efforts.
What factors determine whether a product has elastic, inelastic, or unit-elastic demand in the market?
The factors that determine whether a product has elastic, inelastic, or unit-elastic demand in the market include the availability of substitutes, the necessity of the product, the proportion of income spent on the product, and the time frame considered.
What two factors determine market structure?
demand and supply
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What factors determine whether an individual is classified as a net buyer in the market?
An individual is classified as a net buyer in the market based on their purchasing behavior, where they buy more goods or services than they sell. This classification is determined by factors such as income level, preferences, needs, and overall demand for products or services.
What are Factors which influence the choices of target market?
Pricing strategies will determine who a company targets. Additionally, the quality of the product will help determine who the target market is for a business.
What are the various factors to be considered while development of new product for international markets?
Various factors to consider when developing new products for international markets are determine whether there is a market for your product, consider a partnership to help with costs, and product adaptation.
What factors determine the market structure of a particular industry?
there are four factors that determines the market structure of a particular industry they are: number of buyers and sellers information and mobility the nature of product. entry and exit of a firm from market.
What are the factors that determine the highest covered call premiums available in the market?
The factors that determine the highest covered call premiums in the market are the volatility of the underlying stock, the time until the option expires, the strike price of the option, and the current interest rates.
What are the two major factors that determine market nominal risk free rate?
The two major factors that determine the market nominal risk free rate are the current monetary policy set by the central bank and the overall economic conditions such as inflation and economic growth. Both factors play a significant role in influencing interest rates in the market.
What factors determine if a stock is considered cheap in the current market conditions?
A stock is considered cheap in the current market conditions based on factors such as its price compared to its earnings, growth potential, industry trends, and overall market sentiment.
What factors determine the used bicycle value in the current market?
The factors that determine the value of a used bicycle in the current market include the brand, age, condition, features, and demand for that particular model. Other factors may include any upgrades or modifications made to the bike, as well as the overall popularity of the brand or style.
When is price ceiling non-binding?
Binding Versus Non-Binding price ceilingsA price ceiling can be set above or below the free-market equilibrium price. For a price ceiling to be effective, it must differ from the free market price. In the graph at right, the supply and demand curves intersect to determine the free-market quantity and price. The dashed line represents a price ceiling set above the free-market price, called a non-binding price ceiling. In this case, the ceiling has no practical effect. The government has mandated a maximum price, but the market price is established well below that.In contrast, the solid green line is a price ceiling set below the free market price, called a binding price ceiling. In this case, the price ceiling has a measurable impact on the market.
