Answer:
The correct answer is option b.
Explanation:
A price ceiling refers to the control limit fixed by the government or a group on how high prices could be charged for a product. It is generally imposed to protect consumers from very high prices and keep the necessary commodities affordable for consumers.
A binding price ceiling means that the equilibrium price is above the price ceiling. When the price ceiling is fixed at a price level lower than the equilibrium price it binds the market for that product.
When a price ceiling is not binding, it is fixed above the equilibrium price. A non-binding price ceiling does not affect the market price.
