When a binding price floor is imposed on a market to benefit sellers,
A)no sellers actually benefit.
B)some sellers benefit,but no sellers are harmed.
C)some sellers benefit,and some sellers are harmed.
D)all sellers benefit.

Question

Quizplus · Accepted Answer

When a binding price floor is imposed on a market to benefit sellers, only some sellers benefit while others are harmed. The sellers who are able to sell their products at the higher price set by the price floor benefit, but those who are not able to sell all of their products at the higher price may experience a decrease in demand and revenue or be unable to sell their products at all, resulting in losses or going out of business. Therefore, there are winners and losers among the sellers.

When a Binding Price Floor Is Imposed on a Market