When a binding price floor is imposed on a market to benefit sellers,
A)every seller in the market benefits.
B)all buyers and sellers benefit.
C)every seller who wants to sell the good will be able to do so,but only if he appeals to the personal biases of the buyers.
D)some sellers will not be able to sell any amount of the good.

Question

Quizplus · Accepted Answer

When a binding price floor is imposed, the price is set above the equilibrium price. This means that some sellers may not be able to sell their goods at all, as the higher price may exceed what some buyers are willing to pay. Therefore, not every seller benefits from a price floor, and in fact, some may be worse off.

When a Binding Price Floor Is Imposed on a Market