Suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day.

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 and Binding or Not

The government prohibits car-rental companies from renting out rental cars for more than $87 per day. Price Control (Price Ceiling Or Price Floor)? Binding or Not Binding?

Due to new regulations, car-rental companies that would like to pay better wages in order to hire more workers are prohibited from doing so. Price Control (Price Ceiling Or Price Floor)? Binding or Not Binding?

The government has instituted a legal minimum price of $87 per day for rental cars. Price Control (Price Ceiling Or Price Floor)? Binding or Not Binding?