A binding price floor causes:

Name: A binding price floor causes:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A binding price floor means the government has set a minimum price for a product or service that is above the equilibrium price. This leads to an oversupply, or surplus, of the product because the quantity supplied is greater than the quantity demanded at the higher price. Therefore, choice C, a surplus, is the correct answer.

A Binding Price Floor Causes