If a Price Floor Is a Binding Constraint on a Market,then

question 44

Multiple Choice

If a price floor is a binding constraint on a market,then

• A)the equilibrium price must be above the price floor.
• B)the quantity demanded must exceed the quantity supplied.
• C)sellers cannot sell all they want to sell at the price floor.
• D)buyers cannot buy all they want to buy at the price floor.

---

Definitions:

Escalating Commitment

The phenomenon where individuals or organizations continue to invest in a decision, action, or project despite evidence of its failing outcome.

Decision Makers

Individuals or groups responsible for making choices or judgments among various alternatives in the process of achieving a goal.

Rationalize

To attempt to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Authority Decisions

Decisions made by individuals or bodies within an organization who hold power or authority, often related to governance, policy, and strategic direction.