If a price ceiling of $2 per gallon is imposed on gasoline,and the market equilibrium price is $1.50,the price ceiling is a binding constraint on the market.

Name: If a price ceiling of $2 per gallon is imposed on gasoline,and the market equilibrium price is $1.50,the price ceiling is a binding constraint on the market.
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Quizplus · Accepted Answer

A price ceiling is only binding if it is set below the market equilibrium price. Since $2 is above the equilibrium price of $1.50, it is not a binding constraint.

If a Price Ceiling of $2 Per Gallon Is Imposed