If a price floor is not binding, then
A)there will be a surplus in the market.
B)there will be a shortage in the market.
C)there will be no effect on the market price or quantity sold.
D)the market will be less efficient than it would be without the price floor.

Question

Quizplus · Accepted Answer

A price floor that is not binding is set below the equilibrium price, meaning the market can operate as if the price floor isn't there, leaving the market price and quantity sold unaffected.

If a Price Floor Is Not Binding, Then