Which of the following would not interfere with market equilibria?

Question

Quizplus · Accepted Answer

A non-binding price floor is a price floor set above the equilibrium price and does not interfere with the market equilibrium as it has no effect on the price and quantity traded. However, choices A, B, and D would all interfere with the market equilibrium by creating either a shortage or surplus in the market. A minimum wage sets a price floor for labor, potentially leading to higher unemployment and a surplus of labor. Rent control sets a price ceiling for rental properties, potentially leading to a shortage of available rental units. A binding price ceiling sets a legal maximum price below the equilibrium, potentially leading to a shortage of the product in the market.

Which of the Following Would Not Interfere with Market Equilibria