When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.

Name: When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.
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Question

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A binding price floor is set above the equilibrium price, leading to a surplus of the good because the quantity supplied exceeds the quantity demanded at that price. As a result, some sellers cannot find buyers.

When a Binding Price Floor Is Imposed on a Market