A price floor is
A) a legal minimum on the price at which a good can be sold.
B) often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.
C) a source of inefficiency in a market.
D) All of the above are correct.
Correct Answer:
Verified
Q43: A nonbinding price floor
(i)Causes a surplus.
(ii)Causes a
Q45: If the government removes a binding price
Q46: Suppose the government has imposed a price
Q47: After a binding price floor becomes effective,a
A)smaller
Q49: Which of the following observations would be
Q51: When a binding price floor is imposed
Q52: When a binding price floor is imposed
Q221: If a price floor is not binding,
Q224: A legal minimum on the price at
Q226: If a price floor is not binding,
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