Figure 6-5

-Refer to Figure 6-5.If the horizontal line on the graph represents a price floor,then the price floor is
A) binding and creates a shortage of 40 units of the good.
B) binding and creates a surplus of 50 units of the good.
C) binding and creates a surplus of 90 units of the good.
D) not binding but creates a surplus of 40 units of the good.
Correct Answer:
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Q70: An outcome that can result from either
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