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Figure 6-5 -Refer to Figure 6-5.If the Horizontal Line on the Graph

Question 87

Multiple Choice

Figure 6-5
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.
-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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