Use the following table to answer the following questions.

-What is the quantity demanded when the price floor is $0.75 in the market for public transportation?
A) 100,000
B) 86,000
C) 75,000
D) 116,000
E) 0 (zero)

Question

Use the following table to answer the following questions.
 
-What is the quantity demanded when the price floor is $0.75 in the market for public transportation?
A) 100,000 
B) 86,000 
C) 75,000 
D) 116,000 
E) 0 (zero)

Quizplus · Accepted Answer

A price floor set below the equilibrium price does not affect the market outcome because it is not binding. The quantity demanded at the market equilibrium (without considering the ineffective price floor) is the correct answer.

Use the Following Table to Answer the Following Questions