The likely result of a binding price floor is a _____ of the good at a price _____ the equilibrium price.
A)surplus;above
B)shortage;below
C)surplus;below
D)shortage;above

Question

Quizplus · Accepted Answer

A binding price floor, set above the equilibrium price, leads to a surplus because the higher price encourages producers to supply more of the good than consumers are willing to buy at that price.

The Likely Result of a Binding Price Floor Is a _____