When a Binding Price Floor Is Imposed on a Market

question 64

True/False

When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.

---

Definitions:

Mitigate Damages

The legal principle that requires a party suffering loss or injury to take reasonable action to minimize the extent of the damage or loss.

Employment Contract

A formal agreement specifying the terms and conditions under which an employee agrees to perform certain duties for an employer.

Right of First Refusal

A legal right allowing the possessor to initiate a business deal with the owner of an asset, prior to the owner having the right to engage in that deal with another party.

Injunction

A court order requiring an individual to do or cease doing a specific action.