As a Seller of a Product Subject to a Binding

question 135

Multiple Choice

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

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

Asset

Something that is owned by or owed to an individual or a business firm.

Medium of Exchange

An item that is widely accepted in exchange for goods and services, facilitating trade by eliminating the need for a coincidence of wants.

Federal Deposit Insurance Corporation

Insures bank deposits up to $100,000.

Automated Teller Machines

Electronic banking outlets that allow customers to complete basic transactions without the need for a branch representative or teller.