In order for a price floor to be binding, it must be set _______ the equilibrium price, and it will likely cause _______.

Name: In order for a price floor to be binding, it must be set _______ the equilibrium price, and it will likely cause _______.
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Question

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A price floor must be set above the equilibrium price to be binding, which typically leads to excess supply because the price is artificially kept higher than the market-clearing level, leading to less demand and more supply than would naturally occur.

In Order for a Price Floor to Be Binding, It