Refer to the following graph. A government-imposed price floor of $2 will result in:
A) neither excess supply nor excess demand since it is binding.
B) neither excess supply nor excess demand since it is not binding.
C) an excess demand of 2.
D) an excess supply of 2.

Question

Refer to the following graph.  A government-imposed price floor of $2 will result in:
A) neither excess supply nor excess demand since it is binding. 
B) neither excess supply nor excess demand since it is not binding. 
C) an excess demand of 2. 
D) an excess supply of 2.

Quizplus · Accepted Answer

The Answer of Refer to the following graph.  A government-imposed price floor of $2 will result in:
A) neither excess supply nor excess demand since it is binding. 
B) neither excess supply nor excess demand since it is not binding. 
C) an excess demand of 2. 
D) an excess supply of 2.

Refer to the Following Graph