When a binding price floor is imposed on a market,
A)price no longer serves as a rationing device.
B)the quantity supplied at the price floor exceeds the quantity that would have been supplied without the price floor.
C)only some sellers benefit.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A binding price floor results in a surplus, meaning price no longer serves as an effective rationing device, the quantity supplied exceeds what would be supplied without the floor, and only some sellers benefit as not all can sell their goods.

When a Binding Price Floor Is Imposed on a Market