If the Government Removes a Binding Price Floor from a Market

question 167

Multiple Choice

If the government removes a binding price floor from a market, then the price paid by buyers will

• A)increase, and the quantity sold in the market will increase.
• B)increase, and the quantity sold in the market will decrease.
• C)decrease, and the quantity sold in the market will increase.
• D)decrease, and the quantity sold in the market will decrease.