A surplus results when a
A)nonbinding price floor is imposed on a market.
B)nonbinding price floor is removed from a market.
C)binding price floor is imposed on a market.
D)binding price floor is removed from a market.

Question

Quizplus · Accepted Answer

A surplus occurs when a binding price floor is imposed on a market, as it sets the price above the equilibrium level, leading to more supply than demand at that price.

A Surplus Results When a