As a seller of a product subject to a binding price floor,Makayla would be better off in which of the following situations?
A) Makayla would be better off under a binding price floor because she would be able to sell all that she produces at a higher price.
B) Makayla would be better off under a binding price floor because she would be able to sell goods that are smaller and cost less to produce.
C) Makayla would be better off under a binding price floor because she would be able to sell goods of lower quality,which cost less to produce.
D) Makayla would be better off under a binding price floor because she 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

Under a binding price floor, there is often a surplus of goods. If the government buys the surplus, Makayla can sell more of her product at the higher price set by the price floor, making her better off.

As a Seller of a Product Subject to a Binding