What Does a Binding Price Floor Cause

question 209

Multiple Choice

What does a binding price floor cause

• A)excess demand
• B)a shortage
• C)a surplus
• D)a drop in the equilibrium price

---

Definitions:

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Intermediaries

Entities or individuals that act as a middleman in transactions between buyers and sellers, facilitating trade and potentially adding value.

Dividends

payments made by a corporation to its shareholder members, usually derived from the company's profits.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitling them to receive interest and the return of principal.