(Figure: Understanding Price Ceilings and Floors) In the graph, a maximum price of $25 would allow for a binding price ceiling.

Name: (Figure: Understanding Price Ceilings and Floors) In the graph, a maximum price of $25 would allow for a binding price ceiling.
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In the graph, the demand curve intersects the price ceiling line at a quantity where the price is limited to $25, creating a binding price ceiling. Therefore, option A is true.

(Figure: Understanding Price Ceilings and Floors) in the Graph, a Maximum