Use the following to answer question :
-(Figure: The Market for Spanish Textbooks)Use Figure: The Market for Spanish Textbooks.Suppose that the government believes the producers of Spanish textbooks are not profitable,and it wants to make sure textbook producers are profitable.It could impose a control called a price _____,and for it to be binding,one possible price would be _____.
A) floor;$90
B) floor;$40
C) ceiling;$40
D) ceiling;$90

Question

Use the following to answer question : 
-(Figure: The Market for Spanish Textbooks)Use Figure: The Market for Spanish Textbooks.Suppose that the government believes the producers of Spanish textbooks are not profitable,and it wants to make sure textbook producers are profitable.It could impose a control called a price _____,and for it to be binding,one possible price would be _____.
A) floor;$90 
B) floor;$40 
C) ceiling;$40 
D) ceiling;$90

Quizplus · Accepted Answer

To ensure textbook producers are profitable, the government would impose a price floor, which is a minimum price that must be charged. In the given graph, the equilibrium price is $60, but to ensure profitability, the floor must be set above that level. The only option above the equilibrium price is $90, making it the binding price for a price floor.

Use the Following to Answer Question