Why is it often difficult to remove a binding price floor after it exists?
A) in general,because consumers benefit from the lower prices and would lobby their elected officials to keep the price control
B) in general,because consumers benefit from higher quality products and would lobby their elected officials to keep the price control
C) in general,because consumers benefit from larger products and would lobby their elected officials to keep the price control
D) in general,because sellers benefit from higher prices and would lobby their elected officials to keep the price control
E) in general,because it has little effect on the market price and people forget about it

Question

Quizplus · Accepted Answer

Sellers benefit from a higher price floor and are likely to lobby their elected officials to keep the price control in place in order to protect their profits. This can make it difficult to remove the price floor, even if it is no longer necessary or if it creates inefficiencies in the market.

Why Is It Often Difficult to Remove a Binding Price