A price floor is not binding if
A) the price floor is higher than the equilibrium price of the good.
B) the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor.
C) the quantity of the good supplied with the price floor is less than the quantity supplied of the good without the price floor.
D) All of the above are correct.
Correct Answer:
Verified
Q1: Policymakers use taxes
A)to raise revenue for public
Q18: Figure 6-1 Q19: When,in a particular market,the law of demand Q20: A shortage results when Q21: Figure 6-3 Q23: A binding price floor causes Q24: Suppose the government has imposed a price Q25: When a price floor is binding,the equilibrium Q26: A price floor is binding if it Q27: Figure 6-2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)a binding price ceiling
A)excess demand.
B)a shortage.
C)a
A)is
