A binding price floor causes:
A)a shortage in the market.
B)a surplus in the market.
C)an efficient use of resources.
D)equilibrium.

Name: A binding price floor causes: A)a shortage in the market. B)a surplus in the market. C)an efficient use of resources. D)equilibrium.
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Question

Quizplus · Accepted Answer

A binding price floor means that the price is set above the equilibrium price, causing suppliers to produce more than consumers are willing to buy. This creates a surplus in the market.

A Binding Price Floor Causes