As a seller of a product subject to a binding price floor,you would be better off in which of the following situations?
A) You would be better off under a binding price floor because you would be able to sell all that you produce at a higher price.
B) You would be better off under a binding price floor because you would be able to sell goods that are smaller and cost less to produce.
C) You would be better off under a binding price floor because you would be able to sell goods of lower quality, which cost less to produce.
D) You would be better off under a binding price floor because you could sell any of the resulting surplus to the government.
E) There is no scenario where a seller is better off when selling a good that is subject to a binding price floor.

Question

Quizplus · Accepted Answer

A binding price floor can lead to a surplus, and in some cases, the government may purchase the surplus, allowing sellers to sell their excess goods.

As a Seller of a Product Subject to a Binding