What Will Happen in a Market Where a Nonbinding Price

question 157

Multiple Choice

What will happen in a market where a nonbinding price floor is removed?

• A) The products sold will become more plentiful.
• B) The price or quantity of the product sold on the legal market will not change.
• C) There will be upward pressure on the prices.
• D) There will be downward pressure on the prices.
• E) There will be increased pressure to buy and sell the good on the black market.

---

Definitions:

Certified

Official recognition or guarantee that an individual, organization, product, or document meets certain predefined standards.

Primarily Liable

Refers to the party who has the main responsibility to fulfill an obligation or debt in a legal agreement.

Secondarily Liable

Refers to the responsibility that falls on a party only after the primarily liable party has failed to fulfill their obligations.

Accommodation Maker

An individual who signs a loan document as a guarantor without receiving any of the loan proceeds, promising to pay the debt if the principal borrower fails to do so.