Only typed answer 1. The language of price controlsSuppose that, in a competitive market without government regulations, the equilibrium price of beer is $7.00 per pint.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 ornonbinding.StatementDue to new regulations, breweries that would like to pay better wages in order to hiremore workers are prohibited from doing so.The government prohibits breweries from selling beer for more than $11.00 per pint.The government has instituted a legal minimum price of $2.00 per pint for beer.Price ControlBinding or Not

Price control is of two types, i.e., price floor and price ceiling. A price floor is the…

1. The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of beer is $7.00 per pint. 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 nonbinding. Statement Due to new regulations, breweries that would like to pay better wages in order to hire Price Control Binding or Not