As a Seller of a Product Subject to a Binding

question 76

Multiple Choice

As a seller of a product subject to a binding price floor,you would be better off in which of the following situations?

• A) You would be better off under a binding price floor because you would be able to sell all that you produce at a higher price.
• B) You would be better off under a binding price floor because you would be able to sell goods that are smaller and cost less to produce.
• C) You would be better off under a binding price floor because you would be able to sell goods of lower quality, which cost less to produce.
• D) You would be better off under a binding price floor because you 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.

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