Not all sellers benefit from a binding price floor.

Name: Not all sellers benefit from a binding price floor.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

A binding price floor, set above the equilibrium price, can lead to surpluses where the quantity supplied exceeds the quantity demanded. While some sellers might benefit from the higher prices, others may not be able to sell their goods at all due to the reduced quantity demanded, thus not benefiting from the price floor.

Not All Sellers Benefit from a Binding Price Floor