A binding price floor creates a surplus,which means:
A) there will be downward pressure on prices until quantity demanded equals quantity supplied.
B) there will be upward pressure on prices until quantity demanded equals quantity supplied.
C) there will be upward pressure on the quantity demanded until quantity demanded equals quantity supplied.
D) the quantity demanded will always exceed the quantity supplied.
E) the quantity demanded will always be smaller than the quantity supplied.

Question

Quizplus · Accepted Answer

A binding price floor is set above the equilibrium price, leading to a situation where the quantity supplied exceeds the quantity demanded, creating a surplus.

A Binding Price Floor Creates a Surplus,which Means