A binding value ceiling is sometimes set at a degree below the market equilibrium value. Thus, if the market equilibrium value for strawberries is $3 per pound, then a binding value ceiling would be $2.
When the amount equipped exceeds the amount demanded, a surplus exists. once a base is ready higher than the equilibrium price, as, during this example, it's thought of as a binding base.
Binding base. The equilibrium price is P* and therefore the equilibrium market amount is Q*. At the worth P*, the consumers' demand for the trade goods equals the producers' provide of the trade goods.
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