If Lucy were a politician,why would she find it difficult to remove a binding price floor?
A) because it greatly benefits firms,and they would spend a lot of money to lobby against the law's repeal
B) because it greatly benefits all consumers,who are also voters
C) because it greatly benefits society as a whole,with all consumers able to buy as much as firms produce
D) because it is not difficult to remove; the legal market price or quantity are not affected
E) because it greatly benefits the government,which receives additional tax revenue as a result

Question

Quizplus · Accepted Answer

A binding price floor greatly benefits firms by ensuring they receive a higher price for their goods. As a result, these firms would have a strong incentive to lobby against the repeal of the law, making it difficult for Lucy to remove the binding price floor.

If Lucy Were a Politician,why Would She Find It Difficult