If a Price Floor Is Not Binding, Then

question 144

Multiple Choice

If a price floor is not binding, then

• A)​the equilibrium price is above the price floor.
• B)​the equilibrium price is below the price floor.
• C)​there will be a surplus in the market.
• D)​Both (a) and (c) are correct.

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Definitions:

Openness

One of the five major personality traits characterized by an appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience.

Nonconformist

An individual who does not follow accepted beliefs, customs, or practices, often through deliberate choice.

Five-factor Model

A theoretical model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by mood instability, anxiety, worry, fear, depression, and other emotional states.