Figure 6-5 -Refer to Figure 6-5.If the Horizontal Line on the Graph

question 281

Multiple Choice

Figure 6-5

-Refer to Figure 6-5.If the horizontal line on the graph represents a price floor,then the price floor is

• A) binding and creates a shortage of 40 units of the good.
• B) binding and creates a surplus of 50 units of the good.
• C) binding and creates a surplus of 90 units of the good.
• D) not binding but creates a surplus of 40 units of the good.