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-(Figure: Supply and Demand) Use Figure: Supply and Demand.A binding price floor is represented by:

Question

Use the following to answer question : -(Figure: Supply and Demand)Use Figure: Supply and Demand.A binding price floor is represented by: A) P₁. B) P₂. C) P₃. D) point C.

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A binding price floor is represented by the price at which the quantity supplied is greater than the quantity demanded. In the figure, this occurs at point A, where the quantity supplied is Qs and the quantity demanded is Qd.

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