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.

---

Definitions:

Double-Blind Procedures

An experimental procedure wherein both the subjects of the experiment and the researchers do not know which subjects are receiving the active treatment versus a placebo, to prevent bias.

Demand Characteristics

Features of an experiment that inadvertently lead participants to guess its purpose, potentially affecting their behavior.

Peer Review

The process of judging the scientific merit of research through review by other scientists with the expertise to evaluate the research.

Correspondence Analysis

Correspondence analysis is a statistical technique used to analyze and display the relationships among categorical variables in a visual way, often through charts or graphs.