To say that a price floor is binding is to say that the price floor
A)results in a shortage.
B)is set below the equilibrium price.
C)causes quantity supplied to exceed quantity demanded.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A binding price floor is set above the equilibrium price, causing the quantity supplied to exceed the quantity demanded, leading to a surplus.

To Say That a Price Floor Is Binding Is to Say