A price floor is _____ if it is set _____ the market price.

Name: A price floor is _____ if it is set _____ the market price.
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Question

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A price floor is considered binding when it is set above the market price, meaning that it creates a legal minimum price that must be paid for a good or service. This can result in an excess supply of the good or service, as producers are willing to supply more at the higher price, but consumers may be less willing to purchase at the higher price, resulting in a surplus.

A Price Floor Is _____ If It Is Set _____

A Price Floor Is _ If It Is Set _