Suppose Dawn Lives in a Community with No Price Controls

question 123

Multiple Choice

Suppose Dawn lives in a community with no price controls.What would she expect to happen if her town borders a community where there is a nonbinding price floor on most products?

• A) The products sold will become more plentiful.
• B) The products sold will become less plentiful.
• C) There will be upward pressure on the prices.
• D) There will be downward pressure on the prices.
• E) The price and the quantity sold in the community without a nonbinding price floor will be the same as the price and quantity in the community with a nonbinding price floor.

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