Which of the following would be the least likely result of a binding price ceiling imposed on the market for rental cars? a. an accumulation of dirt in the interior of rental cars b. free gasoline given to people as an incentive to a rent a car c. slow replacement of old rental cars with newer ones d. poor engine maintenance in rental cars

 b. free gasoline given to people as an incentive to a rent a car

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price that can be charged for a good or service.

If a price ceiling is binding, it is usually set below equilibrium price.

When price ceiling is binding, there is usually a shortage as a result of an excess of demand over supply.

There would be no need for a incentive to encourage consumers to demand for a product.

Because price is below equilibrium price, suppliers would be unwilling to replace old rental cars with new ones.

Suppliers might be unwilling to do proper engine maintenance in a bid to reduce cost.

Suppliers might hoard their rental cars in response to the binding price ceiling. So, there would be an accumulation of dirt in the interior of rental cars .

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(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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