If a nonbinding price floor is imposed on a market, then the
A)quantity sold in the market will decrease.
B)quantity sold in the market will stay the same.
C)price in the market will increase.
D)price in the market will decrease.

Question

Quizplus · Accepted Answer

A nonbinding price floor is set below the equilibrium price, meaning it has no effect on the market outcomes. The quantity sold remains the same because the market can naturally settle at its equilibrium without interference.

If a Nonbinding Price Floor Is Imposed on a Market