A binding price floor is:
A)the maximum price that a seller can charge in a market.
B)always at the equilibrium price.
C)always above the equilibrium price.
D)always below the equilibrium price.

Question

Quizplus · Accepted Answer

A binding price floor is a government-imposed minimum price that is set above the equilibrium price, causing a surplus of goods/services in the market as buyers are not willing to buy as many goods/services at the higher price. Therefore, option C is the correct answer.

A Binding Price Floor Is