If a binding price floor is in place and if the demand curve for the product shifts rightward, one consequence would be
A) an increase in the amount of excess demand.
B) a decrease in the amount of excess supply.
C) a decrease in the quantity exchanged.
D) a decrease in the amount of excess demand.
E) an increase in the amount of excess supply.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve increases the quantity demanded, reducing the excess supply created by the binding price floor.

If a Binding Price Floor Is in Place and If