What Does Non Binding Mean in Economics
If the agreement is missing one or more of the basic elements it is probably a non-binding contract. Economics Stack Exchange is a question and answer site for those who study teach research and apply economics and econometrics. Non Binding Price Controls Ap Micro Ib Economics Youtube For unlimited access to Homework Help a Homework subscription is required. . A non-binding offer also referred to as an indicative offer is used in a sales process to establish the terms of a deal between the seller and the buyer. That does not hold one to an obligation duty promise etc. Not legally necessary to obey or follow. The trick is to remember that prices are free to operate ABOVE a price floor just like standing on a floor so any market price above. If the equilibrium price is 2000 per month and the government sets a price ceiling of 3000 per month is anything going to happen. It serves as an agreement to agree between the two parti...