A minimum price set above the equilibrium price is a:
A)demand price.
B)supply price.
C)binding price floor.
D)binding price ceiling.

Question

Quizplus · Accepted Answer

A minimum price set above the equilibrium price is called a binding price floor. This is because it sets a legal minimum price for the good or service, which can create a surplus of the good if the demand for it is insufficient at that price.

A Minimum Price Set Above the Equilibrium Price Is A