If a price floor is a binding constraint on a market,then
A)the equilibrium price must be above the price floor.
B)the quantity demanded must exceed the quantity supplied.
C)sellers cannot sell all they want to sell at the price floor.
D)buyers cannot buy all they want to buy at the price floor.

Question

Quizplus · Accepted Answer

A binding price floor is set above the equilibrium price, leading to a surplus where the quantity supplied exceeds the quantity demanded, meaning sellers cannot sell all they want.

If a Price Floor Is a Binding Constraint on a Market,then