Joe jones, the proprietor of joe jones financial planning inc., which is registered as an investment advisor in new york state, has decided that he can expand his business by setting up an internet website. he includes a questionnaire that solicits individuals to transmit information about their investment objective, financial situation, financial needs, risk tolerance level and investment time horizon. which he will use to create a financial model and plan for a fee. which statement is true?

a. joe jones financial planning inc. must register with the sec as an investment advisor but is not required to register as an investment advisor in each state where customers complete the questionnaire
b. joe jones financial planning inc. is not required to register with the sec as an investment advisor, but the firm is required to register as an investment advisor in each state where customers complete the questionnaire
c. joe jones financial planning inc. is required to register with the sec as an investment advisor, and the firm is required to register as an investment advisor in each state where customers complete the questionnaire

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale